Dubai: The big guns in the UAE banking sector are delivering some sizeable numbers, with ADCB in Abu Dhabi confirming a profit of Dh4.64 billion in the first nine months against Dh3.89 billion a year ago. In the June-to-end September phase, profits totalled Dh1.59 billion as the Abu Dhabi bank felt the lift of the higher interest rate scenario.
Net interest income for Q3-2022 was Dh2.05 billion, up from Dh1.7 billion a year ago. Total assets were higher by 10 per cent to Dh486 billion from the end of December 2021 tally.
Customer deposits went past the Dh300 billion mark for the first time in end September.
“A number of important themes are coming through in our financial performance,” said Ala’a Eraiqat, Group CEO. “These include further strengthening and diversification of revenue streams with double digit growth in both net interest income and non-interest income during the nine-month period.
The bank has recorded loan growth of 3 per cent year-to-date, as lending increased to diverse economic sectors.
Number of accounts that were opened through the ADCB app in the July to September period, which represented 75 per cent of all new-to-bank retail customers during the period.
Steady gains were getting closed by the bank’s digital push, with the flagship ADCB mobile banking app’s subscriber base now past one million. Then there is its transformed digital-only Al Hilal Bank’s app, which now counts on 157,000 registered users since the launch in February last.
All of which helped with the nine-month tally in their own way. “I am pleased to report that ADCB delivered a record net profit of Dh4.65 billion in the first nine months of 2022, an increase of 22 per cent over the prior year, which equates to a return on average tangible equity of 13 per cent,” the CEO added.
Lower on impairment
Another factor that will sit well on the bottom-line – and which could be repeated with the UAE’s systemically important banks – is the 20 per cent drop year-on-year in ADCB’s impairment charges. These at the end of September were Dh636 million.
Net fee, commission
Card related fees were higher by 17 per cent from the year before, while loan processing feed increased 25 per cent. Net fee and commission income in the third quarter were Dh499 million, a gain of 14 per cent.
According to the bank, ADCB Egypt ‘continued to deliver solid growth across consumer and wholesale banking businesses, driven by its digital transformation programme’. Subscribers to the bank’s digital platform was up 111 per cent in Q3-2022, while active digital customers just fell short of a three-digit mark, at 94 per cent.
This translated into net profit for the nine months of 499 million Egyptian pounds, a spike of 46 per cent.
“Together with our robust operating and financial performance, reaffirms ADCB’s position as a highly resilient organisation that is well capable of navigating challenges and achieving sustainable growth,” the CEO said.