UAE bank ADCB’s brand value soars to Dhs10.5bn in 2023

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Abu Dhabi Commercial Bank’s (ADCB) brand value increased by 8.7 per cent to reach Dhs10.5bn in 2023, according to Brand Finance’s 2024 Banking 500 report.

The Abu Dhabi-based bank moved up four places to rank 109th in Brand Finance’s top 500 banking brands globally.

The valuation consultancy firm said ADCB enhanced its brand strength and reputation through its commitment to governance (ESG). Brand Finance said the bank scores the highest amongst UAE banks on all three ESG metrics, “committed to environment”, “committed to social aspects”, and “well managed and well governed”.

Last November 2023, the tank joined the global Net Zero Banking Alliance and tripled its sustainable finance commitment to Dhs125bn by 2030.

The banking group is significantly investing in its digital transformation strategy to drive scalable growth and enhanced customer engagement as part of the bank’s focus on building a future-ready bank – all of which will continue to enhance the value and strength of its brand.

“ADCB is continuing to solidify its reputation as a financial powerhouse in the UAE, as evidenced by promising improvements across key metrics in this year’s ranking,” said Savio D’Souza, senior director at Brand Finance.

“The bank’s robust growth is fuelled by its strong financial position, while its distinguished record of innovation, digital transformation initiatives, and steadfast leadership in climate action have further bolstered its performance and global standing.”

ADCB’s growth prospects

With a market capitalisation of Dhs60.3bn as of April 22, 2024, ADCB’s annual profit jumped 28 per cent to Dhs8.21bn in 2023 while its total assets grew from Dhs498bn in 2022 to Dhs567bn in 2023, driven by higher interest and financing income, as well as a one-off gain from the sale of its property unit.

The bank 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.

ADCB, 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.

It also secured 220,000 new credit card customers in 2023, 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.

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