Abu Dhabi Commercial Bank (ADCB) posted record net profit of AED6.85 billion ($1.86 billion) in the first nine months (9M) driven by growth of diversified income streams, enhanced efficiencies and lower impairment charges. This is a 19% YoY increase.

 

The bank’s net profit after tax in the third quarter (Q3) of the year was AED2.390 billion.

 

ADCB’s 9M net interest income was AED9.721 billion increasing 8%, while non-interest income was AED4.292 billion increasing 32%, with net fees and commission income up 27%.

 

Operating income

9M operating income was AED14.013 billion increasing 15% and cost to income ratio was 31.9% improving by 60 basis points. Operating profit before impairment charge was AED9.546 billion increasing 16%.

 

UAE corporate income tax of 9% came into effect as of  January 1, 2024. Q3’23/9M’23 net profit is on a pre-UAE corporate tax basis, therefore year on year comparison is not on a like-for-like basis. 

 

Total assets reached AED639 billion following a CAGR of 14% over three years, with net loans increasing AED60 billion and deposits AED77 billion over the last 12 months.

 

Net loans of AED344 billion were up 21% (AED60 billion) YoY and 14% (AED42 billion) YTD. New credit extended totalled AED97 billion in 9M’24, with AED53 billion of repayments

 

Customer deposits

Total customer deposits of AED407 billion increased 24% (AED77 billion) YoY and 12% (AED44 billion) YTD. CASA (current and savings account) deposits stood at AED169 billion at September-end, up 8% (AED12 billion) YoY and 1% (AED2 billion) YTD, and accounted for 42% of total customer deposits

Capital adequacy and CET1 ratios were 16.68% and 13.11% respectively. Liquidity coverage ratio (LCR) stood at 136.3%, while loan to deposit (LTD) ratio was 84.6%

 

Cost of risk improved to 0.42% in Q3’24 from 0.73% in Q3’23, and to 0.52% in 9M’24 from 0.73% in 9M’23. The NPL ratio improved to 3.45% from 3.73% at December-end. Provision coverage ratio was 97.5% and, when including collateral, was 156%

 

Robust foundations

“ADCB continued to deliver strong financial results in the third quarter, driven by a strategy to increase market share, significantly broaden corporate and investment banking relationships and expand the retail customer base. The bank’s performance is characterised by strong loan growth and a notable rise in fee and commission income, as well as enhanced efficiencies and credit quality. By reinforcing its market leading position, ADCB is setting robust foundations for further expansion marked by accelerated digital and AI-driven transformation,” said Ala’a Eraiqat, Group Chief Executive Officer.

 

“Our strong growth trajectory remains on track. Profit before tax has increased for 13 consecutive quarters to AED2.678 billion in Q3’24, up 34% year on year, with nine-month profit before tax rising 30% year on year to AED7.702 billion. On a post-tax basis, the Bank delivered a net profit of AED6.846 billion in the first nine months and a return on average tangible equity of 14.8%, at the upper end of our full-year guidance,” said Deepak Khullar, Group Chief Financial Officer.--TradeArabia News Service