Finance & Capital Market

ADCB posts 11pc surge in 2019 profit to $1.42bn

Abu Dhabi Commercial Bank (ADCB) has reported its full year financial results for 2019, announcing a net profit of Dh5.244 billion ($1.42 billion) with double-digit annualised return on tangible equity of 11.2 per cent.

The Board of Directors has recommended a cash dividend of Dh0.38 per share, translating to a pay out of Dh2.644 billion, equivalent to 50 per cent of pro forma net profit, reported Emirates news agency Wam.

Eissa Mohamed Al Suwaidi, ADCB chairman, said: "2019 was a transformational year for the ADCB Group. The merger with Union National Bank and subsequent acquisition of Al Hilal Bank provided the enlarged group with the scale and efficiency required for a major UAE financial institution.”

“The bank, which now serves over one million customers, benefits from resilience and scale necessary to navigate continued challenges and the financial strength to take advantage of new growth opportunities.

"The Bank’s robust fundamentals have been established through our commitment to best-practice governance, a proactive risk and compliance culture, and a high-performance environment. These have also contributed to an efficient and diligent approach to integration, which has already exceeded expectations in terms of timescale and synergies.

"ADCB Group’s continued success remains closely aligned with the UAE’s economic development. Our UAE-centric strategy supports UAE’s vision for development. ADCB has consistently met Emiratisation targets set by the UAE Central Bank and UAE National staff continue to occupy key roles within the Bank’s senior management,” he added.

Ala’a Eraiqat, Group chief executive officer and board member, said, "At the end of a momentous year, the ADCB Group has emerged as a larger and stronger bank, that has once again delivered a robust set of results amid a soft operating environment. The Bank has reported a full year net profit of Dh 5.244 billion, delivering a return on average tangible equity of 11.2 per cent.”

"Following the landmark combination between ADCB, UNB and Al Hilal Bank in May, we have moved ahead with an ambitious schedule for integration, while continuing to develop our people, businesses and technology, to ensure consistently high quality service for our customers.

"We have created a high-performance platform that provides opportunities for UAE National talent and the Bank is committed to providing a pathway for Emiratis to senior leadership positions. The ADCB Group employs 1,479 UAE Nationals who occupy key roles at every level. The Bank has consistently exceeded the Emiratisation targets set by the regulators. The 48 per cent Emiratisation rate at Al Hilal Bank is a reflection of our sustained commitment to achieve these goals,” Eraiqat added.