ADCB net profit up 25% at Dh3.81 billion in first half of 2023
Net impairment charge in H1 was Dh1.496b, compared to Dh950m a year earlier
Abu Dhabi: Abu Dhabi Commercial Bank reported a 25 per cent increase in net profit at Dh3.811 billion for the half-year ended June 2023, the bank said on Thursday.
Net interest income for the period increased 23 per cent to Dh5.782 billion, while non-interest income was up 28 per cent at Dh2.190 billion. Operating income was reported at Dh7.971 billion, up 24 per cent.
“The bank’s strong market position and digital innovation are driving growth against a backdrop of the UAE’s robust economic fundamentals. In the first half, ADCB extended Dh38 billion in new credit across diverse economic sectors and to the retail segment, resulting in net loan growth of 5 per cent during the period. In tandem, deposits have also increased by Dh7 billion, reflecting the trust that customers place in our franchise,” said Group CEO Ala’a Eraiqat.
The bank extended Dh38 billion in new credit in H1’23 to diverse economic sectors, and received Dh27 billion in repayments during the period.
Net loans of Dh272 billion were 12 per cent higher from June last year and up 5 per cent from December 2022, while new credit extended totalled Dh38 billion in the first half of the year.
Total customer deposits were 8 per cent higher from June last year at Dh316 billion, while CASA (current and savings account) deposits were Dh150 billion at June-end.
“Healthy loan growth, coupled with rising benchmark rates, have driven a 14 per cent year on year increase in Q2 net interest income. It is also pleasing to see continued diversification in revenue streams. Quarterly fee and trading income were up 43 per cent and 48 per cent year-on-year, respectively. This contributed to a 22 per cent rise in non-interest income, which represented 27.8 per cent of total operating income in Q2, up from 26.4 per cent a year earlier,” Chief Financial Officer Deepak Khullar added.
Net impairment charge in H1’23 was Dh1.496 billion, compared to Dh950 million a year earlier, when the bank recorded significant releases in Q1’22 as the UAE economy rebounded from the global pandemic. For the quarter, impairment charges were steady on a sequential basis and 14 per cent higher YoY at Dh748 million due to provisioning on a few corporate accounts.