The lender’s total assets were up 8 per cent at Dh476 billion compared to December 2021. Image Credit: Gulf News

Abu Dhabi Commercial Bank reported a 21 per cent jump in half-year net profit at Dh3.059 billion, it said on Thursday.

Operating income stood at Dh6.431 billion, up 6 per cent, on strong net interest and non-interest income at Dh4.718 billion (up 6 per cent) and Dh1.713 billion (up 4 per cent), respectively.

The bank saw a sharp 31 per cent drop in impairment charges for the half-yearly period at Dh950 million.

On a quarterly basis, net profit increased 12 per cent to Dh1.575 billion, compared to the year-ago period.

The lender’s total assets were up 8 per cent at Dh476 billion compared to December 2021.

Net loans were at Dh243 billion at June-end, while total customer deposits of Dh292 billion increased 10 per cent from December 21.

Current and savings account deposits were at Dh159 billion at June-end, up Dh6 billion from the year end, and comprised 54.4 per cent of total customer deposits. The bank’s customer base onboarded digitally grew 65,000 in the quarter.

“These solid financial results reflect the successful implementation of our five-year strategy as the bank continues to invest in digital transformation to support the next phase of expansion,” Group CEO Ala’a Eraiqat said.

“Our balance sheet remains a source of strength for ADCB. The bank also benefits from healthy capital ratios and liquidity positions, with a liquidity coverage ratio of 135.3 per cent, and loan-to-deposit ratio at historically low levels.”

The bank’s cost to income ratio improved by 300 basis points sequentially to 35.1 per cent in Q2’22 primarily on account of higher revenues. In the context of growing inflationary pressures, operating expenses in Q2’22 were up 10 per cent sequentially and 16 per cent year-on-year to Dh1.227 billion on account of higher compensation costs and broad-based investment in the growth of the business, including in digital technology and regulatory compliance.