ADCB net profit rises 23% to Dh6.43 billion in 2022
The bank’s board has recommended dividend of Dh0.55 per share
Abu Dhabi Commercial Bank reported a net profit of Dh6.434 billion for the full-year 2022, up 23 per cent compared to the year-ago period.
The bank’s board has recommended dividend of Dh0.55 per share, equivalent to 60 per cent of net profit, it said on Tuesday.
Net interest income for the full year stood at Dh10.194 billion, a 15 per cent increase over the previous year, driven by loan growth and a higher benchmark rate environment, while operating income grew 17 per cent to Dh14.344 billion.
“As one of the UAE’s largest financial institutions, ADCB performs a vital role in supporting the UAE’s economic growth and momentum. Through broad-based growth, consistent operating performance, and record net profits in 2022, ADCB demonstrated resilience and an ongoing ability to navigate complex macroeconomic challenges,” said chairman Khaldoon Al Mubarak.
“ADCB begins 2023 as a financial institution fully aligned with the nation’s ambitious future priorities, including ensuring economic growth and a commitment to diversified, sustainable business practices.”
The bank also benefited from significant growth in diversified income streams, with non-interest income increasing 22 per cent to Dh4.151 billion in FY 22. Non-interest income accounted for 29 per cent of total operating income in FY22, up from 28 per cent in the previous year.
“ADCB is making significant progress to maintain a leadership position in customer service - from digital innovation and enhancement of data protection, to nurturing talent and applying best practice in ESG.
In 2022, the bank achieved loan growth of 6 per cent, with Dh65 billion of new credit extended to diverse economic sectors,” said Group CEO Ala’a Eraiqat.
“We delivered double-digit growth in net interest income and fee income, while our leading franchise attracted Dh44 billion growth in customer deposits to exceed the Dh300 billion milestone. Additionally, the bank’s cost to income ratio improved 480 basis points year on year to 29.6 per cent in the fourth quarter, at the lower end of our medium-term guidance, partially supported by one-off gains recorded in the quarter.”
The group’s subsidiary Al Hilal Bank welcomed over 350,000 registered users in the first year since the launch of its app, while ADCB Egypt reported a strong rise in 2022 net profit.
In 2022, the ADCB mobile banking subscriptions surpassed the one million mark for registrations.