Abu Dhabi's ADCB reports 22% rise in net profit for first nine months of 2022
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Abu Dhabi’s ADCB reports 22% rise in net profit for first nine months of 2022

Abu Dhabi’s ADCB reports 22% rise in net profit for first nine months of 2022

The bank posted a 10 per cent rise in net interest income, totalling Dhs7.275bn

Abu Dhabi's ADCB reports 22% rise in net profit for first nine months of 2022

Abu Dhabi Commercial Bank posted a net profit of Dhs4.65bn for the first nine months of 2022, rising 22 per cent against a year-earlier period.

Its net interest income rose 10 per cent to reach Dhs7.275bn. Meanwhile, its non-interest income equalled Dhs2.665bn and its operating income totalled Dhs9.941bn, rising 13 per cent and 11 per cent respectively, against the same period last year.

The Abu Dhabi-based lender posted Dhs6.355bn in operating profit before impairment charge, rising 9 per cent.

Ala’a Eraiqat, group chief executive officer, said, “I am pleased to report that ADCB delivered a record net profit of Dhs4.65bn in the first nine months of 2022, an increase of 22 per cent over the prior year, which equates to a return on average tangible equity of 13 per cent.

“A number of important themes are coming through in our financial performance. These include further strengthening and diversification of revenue streams, with double-digit growth in both net interest income and non-interest income achieved in the nine-month period. The bank has recorded loan growth of 3 per cent year to date, as lending increased to diverse economic sectors. Meanwhile, ADCB’s strong franchise has continued to attract significant customer deposits, which exceeded the Dhs300bn mark for the first time at the end of September.”

The bank’s total assets reached Dhs486bn from December 2021, while net loans and advances to customers landed at Dhs251bn by the end of September (up 3 per cent) over December 2021.

The bank also recorded an average interest earning assets of Dhs399bn (up 11 per cent or Dhs38bn over Sep’21), while total customer deposits reached Dhs302bn (14 per cent increase from December 2021).

Capital adequacy and CET1 ratios were 15.44 per cent and 12.6 per cent respectively, with liquidity coverage ratio (LCR) reaching 124.5 per cent.

Q3 results

ADCB reported a net profit of Dhs1.591bn for the third quarter of the year, marking a 25 per cent rise.

It posted a net interest income of Dhs2.558bn and a non-interest income of Dhs952mn, rising 17 per cent and 31 per cent respectively, compared to a year-earlier period. .

The lender’s operating income surging by 21 per cent to reach Dhs3.51bn compared to Q3 2021, while its operating profit before impairment charge rose 20 per cent to equal Dhs2.269bn.

“Across the group, we are driving through an accelerated programme of digitisation to ensure our customers receive the best service,” added Eraiqat.

“Our onboarding app continues to set records with more than 66,000 new accounts opened digitally in the third quarter, while the ADCB mobile banking app has now crossed the milestone of one million subscribers. Al Hilal Bank’s super app has attracted over 157,000 registered users since its launch in February, while investment in digital is also powering growth of ADCB Egypt, which has recorded a 46 per cent increase in nine-month net profit.”

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