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ABU DHABI – Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the third quarter of 2022 (3Q22).
Earnings growth was solid as the UAE economy remained resilient against a challenging global backdrop.
3Q22, compared to 3Q21, the bank achieved a net profit of AED 1.591 billion, an increase of 25%, net interest income of AED 2.558 billion, an increase of 17%, and non-interest income of AED 2.558 billion AED 952 million, an increase of 31%, operating income increased by 21% to AED 3.510 billion, and operating profit before impairment provisions reached AED 2.269 billion, an increase of 20%.
Group CEO Ala’a Eraiqat said: “I am delighted to report that ADCB achieved a record net profit of AED4.650 billion in the first nine months of 2022, an increase of 22% compared to last year, which is equivalent to an average Return on tangible assets was 13.0%.
“The bank continues to maintain a strong growth trajectory and rigorously execute on our strategy to help us navigate an increasingly challenging global economic environment marked by inflationary pressures and rising interest rates.
“A number of important themes emerged in our financial performance. These included further strengthening and diversifying our revenue streams, achieving double-digit growth in net interest income and non-interest income over the nine-month period. Lending to the sector increased, with year-to-date lending up 3%. Meanwhile, ADCB’s strong franchise continued to attract significant customer deposits, surpassing AED300 billion for the first time at the end of September. “
The results also highlighted ADCB’s performance in the first nine months of 2022 (9M’22) compared to 9M’21, showing a net profit of AED4.650 billion (up 22%) and a net interest income of AED7.276 billion (up 10%), non-interest income AED 2,665 million (up 13%), operating income AED 9,941 million (up 11%), operating profit before impairment charges AED 6,355 million (up 9%) , and an impairment charge of AED 1,586 million (a 20% decrease).
At the same time, the increase in loans and deposits has strengthened the strength of the balance sheet, with total assets reaching AED486 billion since Dec-21 and net loans and advances to customers at AED251 billion as at end-September (up 3%) compared to Dec ’21, in September ’22, total new corporate credit reached AED 49 billion. The bank’s average interest-earning assets stood at AED 399 billion (up 11% or AED 38 billion compared to Sep’21), while total customer deposits reached AED 302 billion (up 14% compared to Dec 21). As for checking and savings account (CASA) deposits, they reached AED160 billion at the end of September, up 5% from the end of the year, and accounted for 53% of total customer deposits.
The capital adequacy ratio and CET1 were 15.44% and 12.60% respectively, and the liquidity coverage ratio (LCR) reached 124.5%. Cost of risk in Sep-22 was 60 bps, 3Q22 was 73 bps, NPL ratio was 5.46% (6.48% including POCI), and provision coverage ratio was 87.0% (including held collateral) 140% of the product).
Eraiqat added: “Across the group, we are driving accelerated digitalisation initiatives to ensure our clients receive the best possible service. This is translating into growth in our client base and significantly enhanced engagement. Our onboarding app Continuing to set records, more than 66,000 new accounts were opened digitally in the third quarter, while the ADCB mobile banking app has now crossed the 1 million user milestone. Al Hilal Bank’s super app has attracted more than 1 million users since its launch in February 157,000 registered users, while investments in digitization also fueled ADCB Egypt’s growth, with nine-month net profit up 46%.”
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