UAE bank ADCB Q4 net profit jumps 38%, beats forecasts

Abu Dhabi Commercial Bank ADCB.AD posted a 38 per cent rise in fourth-quarter profit, beating analysts’ forecasts, after higher interest and financing income, as well as a one-off gain from the sale of its property unit.

Abu Dhabi’s second biggest bank also proposed paying a cash dividend of 0.56 dirhams per share for the full year 2023, up from a cash and stock payout in 2022 of Dhs0.18 and Dhs0.37 per share respectively.

ADCB Q4 results

For the three months to December 31, net profit was Dhs2.45bn ($667.14m), up from Dhs1.78bn in the same period a year ago, the bank said in a statement.

Three analysts polled by LSEG had on average forecast net profit for the quarter of Dhs1.97bn.

Net interest income in the fourth quarter increased by 17 per cent year-on-year to Dhs3.41bn.

The lender divested 80 per cent of its total ownership in Abu Dhabi Commercial Properties in December to Nine Yards Plus Holdings, a unit of investment vehicle Ethmar International Holding, recording a net gain of Dhs490m.

The bank known for its strong retail business, said disbursement of personal loans, mortgages and auto loans reached their highest levels in 2023, and the cards business had its best year ever and was the number one issuer of credit cards in the fourth quarter, with a 21 per cent market share in the UAE.

The bank in 2023 secured 220,000 new credit card customers, up 82 per cent from the previous year, driven by digital onboarding – a process of acquiring customers that fully takes place online – and new partnerships including with online food delivery app Talabat, which resonated with customers.

The bank registered net loans of Dhs302bn for 2023, up 17 per cent from 2022, while total customer deposits reached Dhs363bn up 17 per cent from 2022.

Read: Mashreq’s annual profit surges to record on higher net income