ADCB profit jumps 38% to Dh5.24b

Wam file photo
Wam file photo

The group reported net profit of Dh1.448 billion in Q4’21, an increase of 13 per cent quarter on quarter.


A Staff Reporter

Published: Mon 31 Jan 2022, 11:08 PM

Last updated: Mon 31 Jan 2022, 11:10 PM

Abu Dhabi Commercial Bank (ADCB) reported robust financial results for 2021 on Monday against a backdrop of low-interest rates and subdued credit growth in the UAE banking industry.

The bank delivered a strong operational and financial performance in 2021, reporting a 38 per cent increase in net profit to Dh5.247 billion, and a return on average tangible equity of 11.4 per cent and 12.6 per cent for Q4’21. The group reported net profit of Dh1.448 billion in Q4’21, an increase of 13 per cent quarter on quarter.

Khaldoon Al Mubarak, chairman, Abu Dhabi Commercial Bank (ADCB), said: “ADCB’s strong financial performance in 2021 was underpinned by strong business fundamentals, with the additional benefits resulting from the merger in synergies and cost savings evidenced in our  financial and operating results. Our unwavering commitment to best practice governance, healthy organisational culture, and balance sheet resilience provide the deep foundations for the group’s success as we continue the execution of our  five-year growth strategy, with a relentless focus on the opportunities enabled by our digital transformation.”

“The strength of the bank and the dedication of our employees have enabled us to support our customers, shareholders and partners through the ongoing challenges of the pandemic. This was also facilitated by the successful implementation and our collaboration on the ‘Targeted Economic Support Scheme’ pioneered by the UAE Central Bank. ADCB is a significant financial institution and an active member of the UAE community. We are a partner and enabler for the UAE’s priorities and economic opportunities over the coming decades. We are committed to proactively supporting UAE Net-Zero 2050 and are evolving our policies and strategy to calibrate with this critical target,” added Al Mubarak.

Meanwhile, the bank continued to make strong progress on operating efficiency, driven by merger synergies, cost discipline and accelerated digital transformation. The full-year cost to income ratio improved by 160 basis points to 34.7 per cent, with our total cost synergies coming in at Dh1.2 billion, well above our revised target of Dh1 billion for 2021.

Ala’a Eraiqat, group chief executive officer ADCB, said: “The bank achieved healthy net loan growth of 2.2 per cent in 2021. We capitalised on an active lending pipeline to extend Dh40 billion in new credit to targeted economic sectors, including government-related entities, in line with our five-year strategy. Meanwhile, significant corporate repayments reduced concentration risk in certain sectors, such as real estate.”

Increased fee income also made a strong contribution to ADCB revenues, while major subsidiaries, Al Hilal Bank and ADCB Egypt, have made substantial progress towards becoming important engines of growth for the Group. ADCB Egypt reported 32 per cent growth in full-year net profit to EGP 413 million.

Other key achievements in 2021 included the acquisition and seamless integration of Abu Dhabi Finance’s mortgage portfolio, major progress in the restructuring of NMC, and the Bank’s increased role in capital market transactions. ADCB’s strong franchise is evident in all aspects of our business. It is reflected in our ability to attract current and savings account (CASA) deposits, which increased by Dh 25.5 billion during 2021, and in the popularity of our corporate and consumer digital platforms. Our digital subscriptions have reached the significant milestone of one million customers in January 2022, while our “Hayyak” onboarding app registered over 165,000 new customers with ADCB in 2021.

“We recruited 477 Emiratis, bringing our total to 1,854 – close to one in  five of every UAE national employed in the banking sector. Emiratisation initiatives are central to the UAE’s sustainable development, and ADCB remains committed to providing further growth and development opportunities. I would like to express my gratitude to all our customers for their trust and loyalty in ADCB, and to our employees for their unwavering commitment and personal drive to deliver service excellence through the global pandemic,” added Eraiqat. —

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