Abu Dhabi Commercial Bank (ADCB) has reported strong performance in Q2 2023, driven by broad-based income growth and improved efficiency metrics.

 

The bank’s net profit of AED1.932 billion ($525.99 million) is an increase of 3% QoQ and 23% YoY, while the first half (H1) net profit of AED3.811 billion ($1.037 billion) is 25% up on previous year.

 

Highlights of Q1 results:

• Net interest income of AED2.930 billion is an increase of 3% QoQ and 14% YoY;

• Non-interest income of AED1.129 billion is a growth of 6% QoQ and 22% YoY;

• Operating income increased 4% QoQ and 16% YoY to AED4.059 billion;

• Cost to income ratio improved 260 basis points YoY to 32.5%;

• Operating profit before impairment allowances of AED2.740 billion is an increase of 2% QoQ and 21% YoY.

 

Key highlights for H1’23 vs H1’22

• Net profit increased 25% to of AED3.811 billion;

• Net interest income of AED5.782 billion is an increase of 23%;

• Non-interest income rose 28% to AED2.190 billion;

• Operating income grew to AED7.971 billion, up 24%;

• Cost to income ratio improved 450 basis points YoY to 32.0%;

• Operating profit before impairment allowances of AED5.421 billion showed an increase of 33%.

 

The bank’s total assets increased 9% to AED 521 billion from June 2022 and 5% from December 2022.

Net loans of AED272 billion were 12% higher from June 2022 and up 5% from December 22; new credit extended totalled AED38 billion in the first half of the year.

 

Total customer deposits of AED316 billion were 8% higher from June 2022 and up 2% from December 22.

 

Ala’a Eraiqat, Group Chief Executive Officer, said: “ADCB is experiencing solid growth momentum and continues to set new records, with first half net profit up 25% year on year at AED3.811 billion, which translates into a return on average tangible equity of 14.8%.

 

“The bank’s strong market position and digital innovation are driving growth against a backdrop of the UAE’s robust economic fundamentals. In the first half, ADCB extended AED38 billion in new credit across diverse economic sectors and to the retail segment, resulting in net loan growth of 5% during the period. In tandem, deposits have also increased by AED7 billion, reflecting the trust that customers place in our franchise.”

 

He said the bank’s digital-led strategy is underpinning its expansion and approach to risk management. For example, the bank is leading on data security, rolling out ADCB FacePass authentication to over 286,000 of our digital subscribers within just one month. – TradeArabia News Service