A US-based company is developing an eVTOL aircraft for commercial passenger service and is expected to start operations by 2025 or early 2026
Abu Dhabi Commercial Bank (ADCB) reported on Thursday a 21 per cent increase in first-half net profit to Dh3.059 billion, underpinned by higher interest rates and non-interest income.
For the second quarter, the UAE’s third-largest lender posted a 12 per cent year-on-year rise in net profit to Dh1.575 billion.
In a statement, the bank said its strong performance was in context of rising rates and strong UAE economic fundamentals.
“Deposits increased by 10 per cent during the first half, further enhancing the bank’s liquidity position. At the same time, we continued to capitalise on our robust lending pipeline, with Dh35 billion of new credit extended in the first half of the year.”
In the first half, net interest income rose six per cent to Dh4.718 billion while non-interest income of was up four per cent to Dh1.713 billion on yoy basis. Operating income increased six per cent to Dh6.431 billion as impairment charges dropped 31 per cent to Dh950 million, the statement said.
ADCB’s total assets grew eight per cent to Dh476 billion with net loans reaching Dh243 billion while total customer deposits hitting Dh292 billion. CASA, current and savings account, deposits were Dh159 billion at June-end, up Dh6 billion from year end, and comprised 54.4 per cent of total customer deposits. Capital adequacy and CET 1 ratios were 15.22 per cent and 12.37 per cent respectively, said the bank.
Impairment allowances declined three per cent to Dh655 million from Dh678 million as operating expenses rose 22 per cent to Dh2.2 billion in the second quarter.
Ala'a Eraiqat, group chief executive of ADCB, said a record half-year net profit represented a return on average tangible equity of 13.2 per cent.
“These solid financial results reflect the successful implementation of our five-year strategy as the bank continues to invest in digital transformation to support the next phase of expansion,” he said.
He said the bank is accelerating its digital transformation to provide premium service to a consistently expanding customer base.
Eraiqat said over the past two years, as the UAE successfully navigated the global pandemic into a robust recovery, ADCB has played a key role in protecting and promoting the interest of all its stakeholders.
"As a result, the bank remains well-positioned to make strong progress in the years ahead, contributing to the further sustainable growth of the UAE economy.”
Deepak Khullar, group chief financial officer at ADCB, said key financial highlights include a 19 per cent quarterly increase in revenues and a 25 per cent sequential improvement in operating profit, despite growing inflationary pressures.
“The bank also improved its risk-adjusted net interest margin in the first half as a result of a strategic rebalancing of our loan portfolio. We continue to increase lending to targeted economic sectors including manufacturing, trading and energy, while further reducing exposure to real estate.”
He said the bank maintains healthy asset quality metrics, with a cost of risk of 54 basis points in H1 22. It is in line with “our medium-term guidance, while our non-performing loan and provision coverage ratios improved to 5.59 per cent and 147 per cent, respectively, Khullar said.
He said deposits increased by 10 per cent during the first half, further enhancing the bank’s liquidity position. “At the same time, we continued to capitalise on our robust lending pipeline, with Dh35 billion of new credit extended in the first half of the year.”
“ADCB is in a strong financial position, benefiting from a robust balance sheet and diversified income streams through each of our business segments. The Bank is well prepared to weather an increasingly challenging global economic environment and to grasp opportunities to support the resilience of the UAE economy as the country implements growth and diversification strategies,” said Khullar.
— issacjohn@khaleejtimes.com
A US-based company is developing an eVTOL aircraft for commercial passenger service and is expected to start operations by 2025 or early 2026
The project’s aim is to generate funds for Harmony House, an orphanage located in India's Gurgaon
Earlier, the Emergency, Crisis and Disaster Management confirmed the reopening of all roads in the emirate
His case was considered a milestone for #MeToo, in which women accused hundreds in entertainment, media, politics and other fields of sexual misconduct
Well-known communication expert Maha Abouelenein on what it takes to thrive in the age of social media
From cultural events, and culinary delights to outdoor adventures, here's a line-up of thrilling activities to make your weekend exciting
'The rom-com garnered $219 million worldwide after its premiere in December
The guitar will be auctioned on May 29 at the Hard Rock Cafe in New York