ADCB’s net profit rises 27% to hit Dhs1.87 billion in first quarter

Abu Dhabi Commercial Bank (ADCB) has announced a 27 per cent increase in net profit during the first quarter of 2023, reaching Dhs1.878 billion. The bank’s net interest income also grew by 33 per cent settling at Dhs2.851 billion, while non-interest income increased by 34 per cent to reach Dhs1.061 billion.

ADCB’s operating profit before impairment charge grew by 47 per cent, totalling Dhs2.681 billion, and operating income increased by 33 per cent to Dhs3.912 billion.

ADCB’s total assets amounted to Dhs501 billion, up 13 per cent compared to the first quarter of 2022 and by 1 per cent compared to the end of 2022. Meanwhile, net loans and advances increased by 7 per cent to reach Dhs264 billion compared to the first quarter of 2022, and customer deposits increased by 19 per cent to reach Dhs311 billion compared to the first quarter of 2022.

In addition, the bank granted Dhs20 billion in new credit facilities during the first quarter of 2023. Customer deposits in current and savings accounts amounted to Dhs158 billion, accounting for 51 per cent of total customer deposits, an increase of Dhs5 billion by the end of the first quarter of 2023.

ADCB’s capital adequacy ratio reached 15.67 per cent, and the first-tier ratio reached 12.93 per cent, while the liquidity coverage ratio (LCR) reached 132.9 per cent. The cost of risk for the first quarter of 2023 was 75 basis points, and the non-performing loan ratio reached 5.42 per cent.

The ratio of non-performing loans, including net impaired assets (POCI), reached 6.06 percent. The coverage ratio for cash provisions reached 92.4 percent, while the coverage ratio when collateral was added reached 143 per cent. Ala’a Eraiqat, Group Chief Executive Officer of ADCB, announced that the bank has maintained its growth momentum in 2023, delivering a 27 percent year-on-year increase in net profit to Dhs1.878 billion in Q1’23. He stated that this growth momentum reflects the bank’s solid balance sheet, prudent risk management, and a resilient UAE economy.

Despite the heightened uncertainty in the global economy and international banking sector, ADCB has achieved record quarterly results. The bank’s total assets crossed the Dhs500 billion mark during the first quarter for the first time, solidifying its standing as a leading financial institution in the UAE. In the first quarter, ADCB welcomed over 114,000 new retail customers, with 80 per cent joining through digital channels.

The bank’s cards business, personal and auto loans, and mortgages provided combined asset growth of 11 percent year on year, reflecting positive consumer sentiment and ADCB’s ability to remain closely attuned to the market.

Eraiqat added that ADCB’s first quarter performance demonstrates its sharp focus on customer service excellence and its strong financial position.

WAM