Loan growth at ADCB drives 26% rise in Q1 pre-tax profit to Dh2.431b

Abu Dhabi Commercial Bank (ADCB) recorded net profit before tax of Dh2.431 billion during the first quarter of 2024, an increase of 26 per cent, primarily driven by solid loan growth in the corporate, investment, and retail banking businesses.

The top lender logged net profit after tax was Dh2.139 billion, with a return on average tangible equity of 14.1 per cent. Also, net interest income reached Dh3.301 billion, increasing 16 per cent, while non-interest income settled at Dh1.285 billion, growing 21 per cent.

The personal loan portfolio was 12 per cent higher from last year, with auto loans up 28 per cent and mortgages rising 26 per cent. Over 205,000 new customers joined the bank in the first quarter, with 84 per cent onboarded digitally, the lender revealed.

"ADCB’s strong franchise continues to attract substantial deposit inflows. During the quarter, total customer deposits increased by 6 per cent from December-end and 24 per cent year on year. The bank attracted 152,000 new Current and Savings Account (CASA) customers and Dh12 billion of CASA deposits in the quarter," said Group Chief Executive Officer Ala’a Eraiqat, while adding that CASA deposits now represent 47 per cent of total customer deposits.

Meanwhile, operating income rose 17 per cent to Dh4.586 billion, with the cost-to-income ratio settling at 30.9 percent, improving by 60 basis points.

"The bank remains committed to investing substantially in talent and technology to maintain market-leading digital innovation and service excellence for its customers," said Deepak Khullar, Group Chief Financial Officer.