ADCB quarterly net profit jumps 25% to AED1.59b

Abu Dhabi / WAM

The Abu Dhabi Commercial Bank PJSC (ADCB) on Monday reported its financial results for the third quarter of 2022 (Q3 2022).
Solid earnings growth as UAE economy remains resilient against challenging global backdrop.
During Q3 2022 and compared to Q3 2021, the bank recorded a net profit of AED1.591 billion, an increase of 25%, a net interest income of AED2.558 billion, rising by 17%, and a non-interest income of AED952 million, a 31% increase, with its operating income surging by 21% to reach AED3.510 billion, and its operating profit before impairment charge hitting AED2.269 billion, an increase of 20%.
Ala’a Eraiqat, Group Chief Executive Officer, said, “I am pleased to report that ADCB delivered a record net profit of AED4.650 billion in the first nine months of 2022, an increase of 22% over the prior year, which equates to a return on average tangible equity of 13.0%.”
“The bank has continued on a strong growth trajectory, with disciplined implementation of our strategy helping us to navigate an increasingly challenging global economic environment, marked by inflationary pressures and rising interest rates.
“A number of important themes are coming through in our financial performance. These include further strengthening and diversification of revenue streams, with double-digit growth in both net interest income and non-interest income achieved in the nine-month period. The bank has recorded loan growth of 3 percent year to date, as lending increased to diverse economic sectors. Meanwhile, ADCB’s strong franchise has continued to attract significant customer deposits, which exceeded the AED 300 billion mark for the first time at the end of September.”
The results also highlighted ADCB’s performance during the first nine months of 2022 (9M’22) as compared to 9M’21, showing a net profit of AED 4.650 billion (22 percent increase), a net interest income of AED 7.276 billion (10 percent increase), a non-interest income of AED 2.665 billion (13 percent increase), an operating income of AED 9.941 billion (11 percent increase), an operating profit before impairment charge of AED 6.355 billion (9 percent increase), and an impairment charge of AED 1.586 billion (20 percent decrease).
Meanwhile, a rise in loans and deposits has reinforced balance sheet strength, where total assets reached AED 486 billion from Dec’21, and net loans and advances to customers landed at AED 251 billion by the end of September (up 3 percent) over Dec’21, with new corporate credit extended totalling AED 49 billion in 9M’22. The bank also recorded an average interest earning assets of AED 399 billion (up 11 percent or AED 38 billion over Sep’21), while total customer deposits reached AED 302 billion (14 percent increase from Dec’21). As for current and savings account (CASA) deposits, they landed AED 160 billion by September’s end, up 5 percent from year-end, and comprised 53 percent of total customer deposits.
Capital adequacy and CET1 ratios were 15.44 percent and 12.60 percent respectively, with liquidity coverage ratio (LCR) reaching 124.5 percent. The cost of risk for 9M’22 was 60 bps and 73 bps for Q3’22 and the NPL ratio was at 5.46 percent (6.48 percent including POCI), while provision coverage ratio was 87.0 percent (140 percent including collateral held).
Eraiqat added, “Across the Group, we are driving through an accelerated programme of digitisation to ensure our customers receive the best service. This is translating into growth in our customer base and significantly enhanced engagement. Our onboarding app continues to set records with more than 66,000 new accounts opened digitally in the third quarter, while the ADCB Mobile Banking app has now crossed the milestone of one million subscribers. Al Hilal Bank’s super app has attracted over 157,000 registered users since its launch in February, while investment in digital is also powering growth of ADCB Egypt, which has recorded a 46 percent increase in nine-month net profit.”