ADCB reports record quarterly net profit of Dh1.591 BN, up 25% yoy, and 9M’22 net profit of Dh 4.650 BN, up 22%

Press release
Published October 24th, 2022 - 03:00 GMT
ADCB reports record quarterly net profit of  Dh1.591 BN, up 25% yoy, and 9M’22 net profit of Dh 4.650 BN, up 22%
Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today reported its financial results for the third quarter of 2022 (“Q3’22”).

Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today reported its financial results for the third quarter of 2022 (“Q3’22”).

  • Solid earnings growth as UAE economy remains resilient against challenging global backdrop

Key highlights – Q3’22 vs. Q3’21

> Net profit of AED 1.591 bn increased 25%

> Net interest income of AED 2.558 bn increased 17%

> Non-interest income of AED 952 mn increased 31%

> Operating income of AED 3.510 bn increased 21%

> Operating profit before impairment charge of AED 2.269 bn increased 20%

Key highlights – 9M’22 vs. 9M’21

> Net profit of AED 4.650 bn increased 22%

> Net interest income of AED 7.276 bn increased 10%

> Non-interest income of AED 2.665 bn increased 13%

> Operating income of AED 9.941 bn increased 11%

> Operating profit before impairment charge of

AED 6.355 bn increased 9%

> Impairment charge of AED 1.586 bn decreased 20%

  • Rise in loans and deposits has reinforced balance sheet strength

(All numbers are as at 30 September 2022 unless otherwise stated)

> Total assets of AED 486 bn increased 10% from Dec’21

> Net loans and advances to customers were AED 251 bn at September-end, up 3%

(or AED 7 bn) over Dec’21

– New corporate credit extended totalled AED 49 bn in the first nine months of the year

> Average interest earning assets of AED 399 bn were up 11% (or AED 38 bn) over Sep’21

> Total customer deposits of AED 302 bn increased 14% (or AED 37 bn) from Dec’21. CASA (Current and savings account) deposits were AED 160 bn at September-end, up

5% (or AED 7 bn) from year-end, and comprised 53% of total customer deposits

> Capital adequacy and CET1 ratios were 15.44% and 12.60% respectively

> Liquidity coverage ratio (LCR) of 124.5%

> Cost of risk for 9M’22 was 60 bps and 73 bps for Q3’22. NPL ratio was at 5.46%

(6.48% including POCI), while provision coverage ratio was 87.0% (140% including

collateral held)

Ala’a Eraiqat, Group Chief Executive Officer said:

“I am pleased to report that ADCB delivered a record net profit of AED 4.650 billion in the first nine months of 2022, an increase of 22% over the prior year, which equates to a return on average tangible equity of 13.0%.

The Bank has continued on a strong growth trajectory, with disciplined implementation of our strategy helping us to navigate an increasingly challenging global economic environment, marked by inflationary pressures and rising interest rates.

A number of important themes are coming through in our financial performance. These include further strengthening and diversification of revenue streams, with double-digit growth in both net interest income and non-interest income achieved in the nine-month period. The Bank has recorded loan growth of 3% year to date, as lending increased to

diverse economic sectors. Meanwhile, ADCB’s strong franchise has continued to attract significant customer deposits, which exceeded the AED 300 billion mark for the first time at the end of September.

Across the Group, we are driving through an accelerated programme of digitisation to ensure our customers receive the best service. This is translating into growth in our customer base and significantly enhanced engagement. Our onboarding app continues to set records with more than 66,000 new accounts opened digitally in the third quarter, while the ADCB Mobile Banking app has now crossed the milestone of one million subscribers. Al Hilal Bank’s super app has attracted over 157,000 registered users since its launch in February, while investment in digital is also powering growth of ADCB Egypt, which has recorded a 46% increase in nine-month net profit.

In addition to technology, our commitment to investing in our people continues to drive our growth and the sustainability of our business. I am proud to say that our ongoing efforts in social responsibility and talent development were recently recognised by Forbes - World’s Best Employers Survey 2022. ADCB was amongst the 9 select companies that featured from the Middle East, and the only UAE bank included in the global list.

This, 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 aligned with the UAE’s strategic ambitions.”

1 million+

Subscription milestone reached for

ADCB Mobile Banking App

Deepak Khullar, Group Chief Financial Officer said:

ADCB produced a solid financial performance in the third quarter of 2022, marked by broad-based growth in net profit of 25% year on year, as well as continued strengthening of the balance sheet.


YoY increase in Q3’22 net profit

Rising interest rates coupled with the Bank’s increased lending activity underpinned a 17% year on year increase in net interest income in the third quarter. Meanwhile, ADCB continued to focus on diversifying its revenue streams and generated 31% growth in non-interest income in Q3 compared to the same period last year.

Our liquidity position strengthened further in Q3, with the Bank’s loan to deposit ratio improving to 83% from 92% at year-end, while our liquidity coverage ratio remained robust at 124.5%.

One of our key achievements this year has been the integration of a refreshed ESG framework into the Bank’s corporate strategy. In September, ADCB took a major step by issuing its first ever green bond, tapping strong investor demand to raise USD 500 million to support the financing of low-carbon businesses and projects. As a result of ADCB’s robust ESG approach, the Bank’s inaugural green bond was selected to feature in the

Bloomberg MSCI Green Bond Index.

In recognition of the significant progress ADCB has made on ESG over the last 18 months, leading ESG ratings agency Sustainalytics upgraded our ESG risk score, making ADCB the highest-ranked diversified bank in the GCC. Moreover, Sustainalytics now ranks ADCB among the top-10 banks globally for our approach to managing risks related to data privacy and security.

Robust financial performance, combined with an unwavering commitment to operational excellence and implementation of best practice in ESG are ensuring that ADCB is one of the region’s most resilient financial institutions.

Background Information

Abu Dhabi Commercial Bank

ADCB was formed in 1985 and today after integration employs over 3,350 people from over 45 nationalities, serving approximately 590,000 retail customers and over 20,000 wholesale clients.  It is the third largest bank in the UAE and second largest in Abu Dhabi by assets, at AED 163.7 billion as at March 31st, 2010. 

ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate, currency, derivative, Islamic products, project finance and property management services. 

ADCB is owned 64.8% by the Abu Dhabi Government through the Abu Dhabi Investment Council.  Its shares are traded on the Abu Dhabi Securities Market. 

ADCB has won the Silver class category of The Sheikh Khalifa Excellence Award (SKEA) for the finance sector in November, 2009.  In February 2010, ADCB won The World Finance Corporate Governance Award for “Best Corporate Governance in the UAE” and was recently named “Best Retail Bank in the UAE and GCC 2010” by The Asian Banker magazine in March 2010.

Check out our PR service

Signal PressWire is the world’s largest independent Middle East PR distribution service.


Sign up to our newsletter for exclusive updates and enhanced content