Abu Dhabi: Abu Dhabi Commercial Bank reported a 24 per cent increase in net profit at Dh5.75 billion for the nine-month period ended September 2023, the bank said on Wednesday.
Net interest income for the period increased 23 per cent to Dh8.96 billion, while non-interest income was up 22 per cent at Dh3.24 billion. Operating income was reported at Dh12.20 billion, up 23 per cent.
"In our core market, the UAE, the economy has remained resilient in the face of global headwinds. ADCB is leveraging its strong franchise and digital proposition to serve a growing customer base amid robust consumer and business confidence," said Ala'a Eraiqat, Group CEO. "Looking into 2024, we remain confident in the country's fundamentals and continued investment in its economic diversification strategy."
The bank extended Dh52 billion in new credit in 9M’23 to diverse economic sectors, and received Dh32 billion in repayments during the period.
"Given the Bank's strong performance, we are updating our guidance on certain key metrics," said Deepak Khullar, Group Chief Financial Officer. "We expect return on average tangible equity in the range of 14 per cent to 15 per cent, driven by net loan growth of between 10 per cent to 12 per cent, and net interest margin of approximately 2.80 per cent. The Bank is also targeting a 50 per cent cash dividend payout on this year’s earnings, supported by its robust capital position."
Net loans of Dh284 billion were 13 per cent higher from September last year and up 10 per cent year to date, while new credit extended totalled Dh52 billion in the first nine months of the year.
Total customer deposits were 9 per cent higher from September last year at Dh329 billion, while CASA (current and savings account) deposits were Dh157 billion at September-end.
Net impairment charge in 9M 23 was Dh2.31 billion, compared to Dh1.58 million a year earlier.
