Abu Dhabi Commercial Bank (ADCB) announced yesterday that it achieved robust financial performance in the first half of 2024, fueled by record growth in net income. This positive performance reflects the strength of the UAE’s economic fundamentals.
Net profits before tax surged by 28% to AED 5.023 billion, while net profits following tax reached AED 4.456 billion.
Interest income also rose by 14% to AED 6.577 billion.
Non-interest income climbed by 24% to AED 2.723 billion.
Operating income increased by 17% to AED 9.300 billion. The cost-to-income ratio improved by 30 basis points, settling at 31.7%. Operating profit, before provisions, increased by 17% to AED 6.349 billion.
Total assets reached a record high of over AED 600 billion. Net loans grew by AED 30 billion in the first half of 2024, while customer deposits increased by AED 27 billion since the beginning of the year.
Ala’a Eraiqat, ADCB Group CEO, stated: “ADCB Group’s strategy to accelerate business growth has significantly contributed to the bank’s operational and financial performance. Net profit before tax increased by 30% year-on-year to AED 2.593 billion in the second quarter, and net profit increased by 28% in the first half of this year to AED 5.023 billion. Net profit following tax amounted to AED 4.456 billion in the first half and AED 2.317 billion in the second quarter, resulting in a return on average shareholders’ equity of 15.0% and 16.5% respectively.”
“ADCB continues to solidify its strong market position by expanding the volume of credit facilities it provides to all business sectors, leveraging the solid foundations of the UAE economy. The bank is progressing towards achieving its strategic targets, as operating income exceeded AED 9 billion during the first half. This signifies significant growth in interest and non-interest income compared to the same period last year. The rise in fee income has also contributed to enhancing the diversity of revenue sources. This success is underpinned by a high level of excellence in customer service and a variety of leading banking services and products across all its core business sectors,” he added.
Deepak Kohler, ADCB Group Chief Financial Officer, stated: “ADCB plays a critical role in supporting the region’s dynamic economic environment, with total assets exceeding AED 600 billion, representing a CAGR of 14% over the past three years. The bank recorded an increase in net loans and advances of AED 30 billion in the first half of this year, driven by increasing demand from its retail and corporate customers. This robust growth was characterized by an increase in high-quality credit facilities, resulting in an increase in credit risk-weighted assets of AED 6 billion in the first six months of 2024.”
Abu Dhabi Commercial Bank Reports Strong First-Half 2024 Results
Abu Dhabi Commercial Bank (ADCB) has announced impressive financial performance for the first half of 2024, driven by strong growth in net income and fueled by the robust UAE economy. This performance reflects the bank’s commitment to strategic growth and its ability to capitalize on the positive economic climate.
Key Highlights of ADCB’s First-Half 2024 Performance
- Net profit before tax surged by 28% to AED 5.023 billion, demonstrating strong profitability.
- Net profit following tax reached AED 4.456 billion, showcasing the bank’s efficiency in managing its operations.
- Interest income climbed by 14% to AED 6.577 billion, indicating healthy growth in core banking activities.
- Non-interest income experienced robust growth of 24% to AED 2.723 billion, highlighting the diversification of revenue streams.
- Operating income increased by 17% to AED 9.300 billion, reflecting the bank’s expanded business activities.
- Cost-to-income ratio improved by 30 basis points to 31.7%, demonstrating efficiency in managing expenses.
- Operating profit before provisions rose by 17% to AED 6.349 billion, indicating strong operational performance.
- Total assets reached a record high of over AED 600 billion, signifying the bank’s size and presence in the market.
- Net loans increased by AED 30 billion in the first half of 2024, reflecting the bank’s commitment to supporting businesses and individuals.
- Customer deposits increased by AED 27 billion since the beginning of the year, showing strong customer confidence in the bank.
Strategic Growth and Market Leadership
ADCB’s CEO, Ala’a Eraiqat, emphasized the role of the bank’s strategic growth strategy in driving these positive results. He highlighted the impressive year-on-year growth in net profit before tax for the second quarter, reaching AED 2.593 billion, and the 28% increase in net profit for the first half. This performance is reflected in an exceptional return on average shareholders’ equity of 15.0% and 16.5% for the first half and second quarter, respectively.
Eraiqat also stressed ADCB’s commitment to leveraging the strong UAE economy to consolidate its market leadership. The bank’s growth strategy involves expanding its credit facilities across various business sectors, ensuring its continued growth in the future.
Performance Driven by Efficiency and Diversification
ADCB’s Chief Financial Officer, Deepak Kohler, emphasized the bank’s role in supporting the vibrant economic environment in the region. The achievement of a CAGR of 14% in total assets over the past three years underscores the bank’s commitment to growth and its ability to capitalize on regional opportunities. The increase in net loans and advances by AED 30 billion reflects strong demand from both retail and corporate customers.
Kohler highlighted the positive impact of expanding high-quality credit facilities, leading to a growth of AED 6 billion in credit risk-weighted assets in the first half of 2024. This reflects the bank’s careful and calculated approach to managing risk while delivering value to its customers.
ADCB’s Continued Commitment to Growth
ADCB’s strong performance in the first half of 2024 is a testament to its robust business model, its commitment to strategic growth, and its ability to adapt to the evolving economic landscape. The bank’s commitment to innovation, customer-centricity, and leveraging the positive economic climate in the UAE positions it for continued success in the future.
Key Takeaways
- Strong growth in net income driven by increased interest and non-interest income.
- Record high total assets reflecting the bank’s strong market position.
- Continued focus on strategic growth, expanding credit facilities and leveraging the strong UAE economy.
- Efficient management of expenses, leading to a positive cost-to-income ratio.
- Commitment to supporting the region’s economic development by providing financing solutions to both retail and corporate customers.
Keywords
Abu Dhabi Commercial Bank, ADCB, financial performance, first half, 2024, net income, profit, interest income, non-interest income, operating income, cost-to-income ratio, assets, loans, deposits, UAE economy, strategic growth, market leadership, customer confidence.
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