ADCB records net profit of AED2.782bn in H1 2019

ABU DHABI / WAM

Abu Dhabi Commercial Bank (ADCB) on Sunday reported its half-year financial results for 2019, with a net profit of AED2.782 billion.
According to a statement, the financial results are based on six-month pro-forma financial statements for the combined entity, following the merger between ADCB and Union National Bank (UNB) and the subsequent acquisition of Al Hilal Bank on May 1. The combination, which reinforced ADCB Group’s position as the third largest bank by assets in the UAE, has created a resilient platform for sustainable growth through greater scale.
Overall ADCB reported strong growth in gross interest and Islamic financing income of AED9.611 billion (up 11 percent) and double digit return on tangible equity, while net profit was
impacted by an increase in cost of funds and lower non-interest income.
Non-interest income of AED1.428 billion was down six percent, mainly on account of lower net fees and commission income and lower foreign exchange income, offset by higher gains from dealing in derivatives. Operating expenses increased by six percent, reaching AED2.671 billion, primarily attributable to integration-related expenses and continued investments in digital transformation.
Eissa Mohamed Al Suwaidi, Group Chairman, said, “The combination of ADCB, UNB and Al Hilal Bank, which is still at an early stage, is a significant development and landmark transaction for the UAE. The new banking group has the strength and expertise to play a central role in the country’s economic development in the years ahead.
“The enlarged ADCB Group has the power to invest significantly in its infrastructure to remain at the forefront of a fast-changing industry, providing the excellence and
convenience that customers demand, he added.
Ala’a Eraiqat, Group CEO and Board Member said, “Following merger, ADCB is pleased to report first consolidated financial results, which reflect scale and str-ength of our balance sheet. With AED417 billion of assets and over one million customers, the group is well-positioned to thrive in highly competitive banking industry, and drive further shareholder value through greater efficiency, new opportunities.”