ADCB net profit jumps 32% at Dh1.48 billion in Q1’22
Net loans of Dh245.8 billion were 4 per cent higher from March 2021 levels
Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) on Monday reported a net profit of Dh1.48 billion in Q1 2022, a 32 per cent growth compared to the year-ago period.
Net interest income for the lender stood at Dh2.146 billion, up 1 per cent year-on-year, while net fees and commission jumped 10 per cent at Dh487 million.
“ADCB delivered a solid performance in the first quarter of 2022 reflecting improving economic conditions in the UAE, despite ongoing global uncertainty. Net profit increased 32 per cent year on year to Dh1.483 billion – equivalent to a return on average tangible equity of 12.6 per cent,” Group CEO Ala’a Eraiqat said.
Cost to income ratio stood at 38.1 per cent, while operating expenses of Dh1.118 billion were up 5 per cent year-on-year and down 1 per cent compared to the previous quarter.
More loans, higher deposits
Net loans of Dh245.8 billion were 4 per cent higher from March 2021 levels, and up 1 per cent from December 2021. New credit of Dh13 billion extended in the first quarter of 2022 was offset by corporate repayments.
Total customer deposits stood at Dh261.9 billion, up 10 per cent from March 2021 levels, and 1 per cent lower than in December last year. CASA (current and savings account deposits) were Dh150.7 billion at end-March 2022, up Dh13 billion from a year earlier, and comprised 57.5 per cent of total customer deposits.
“The bank has continued to grow and diversify its loan book, with Dh13 billion of new credit extended in the first quarter. In line with our strategy, the bank continued to focus on lending to government and public sector entities, while exposure to real estate sector was further reduced during the quarter,” the Group CEO said.
Embracing tech
Subscriptions to the bank’s internet and mobile banking platforms increased by 16 per cent year-on-year to more than one million customers at the end of Q1 2022, with registered users of the ADCB Mobile Banking App up 24 per cent to over 894,000. The ‘Hayyak’ onboarding app registered around 57,000 new customers in Q1 – the highest achieved in a quarter -- representing 77 per cent of total new-to-bank customers in the period.