ADCB Reports Record Full-Year Net Profit Of AED 6.434 Bn, Up 23%, And Q4'22 Net Profit Of AED 1.784 Bn, Up 23% Yoy Recommended Dividend Of AED 0.55 Per Share, Equivalent To 60% Of Net Profit - Mid-East.Info

(MENAFN- Mid-East.Info)

Abu Dhabi: Abu Dhabi Commercial Bank PJSC (“ADCB” or the“Bank”)
today reported its financial results for 2022 (“FY'22”) and the fourth quarter of 2022 (“Q4'22”).

Record earnings driven by credit growth, higher net interest margin and diversified income streams

Key highlights – FY'22 vs. FY'21

  • Net profit of AED 6.434 bn increased 23%
  • Net interest income of AED 10.194 bn increased 15%
  • Non-interest income of AED 4.151 bn increased 22%
  • Net fees and commission income of AED 2.110 bn increased 11%
  • Operating income of AED 14.344 bn increased 17%
  • Cost to income ratio of 34.1% improved by 60 bps
  • Operating profit before impairment charge of AED 9.456 bn
    increased 18%

Key highlights – Q4'22 vs. Q4'21

  • Net profit of AED 1.784 bn increased 23%
  • Net interest income of AED 2.918 bn increased 30%
  • Net fees and commission income of AED 620 mn increased 19%
  • Non-interest income of AED 1.486 bn increased 45%
  • Operating income of AED 4.403 bn increased 34%
  • Cost to income ratio of 29.6% improved 480 bps
  • Operating profit before impairment charge of AED 3.101 bn
    increased 44%

Strong balance sheet supported by robust growth in loans and customer deposits

(All numbers are as at 31 December 2022 unless otherwise stated)

  • Total assets of AED 498 bn increased 13% from Dec'21
  • Net loans were AED 258 bn, up 6% (AED 14 bn) from Dec'21. New credit extended totalled AED 65 bn over the course of the year
  • Total interest earning assets of AED 406 bn were up 11% (AED 41 bn) over Dec'21Total customer deposits of AED 309 bn increased 17% (AED 44 bn) from Dec'21. CASA (Current and savings account) deposits were AED 153 bn at December-end, and comprised 50% of total customer deposits
  • Capital adequacy and CET 1 ratios were 15.77% and 12.96% respectively
  • Liquidity coverage ratio (LCR) of 138.9%
  • Cost of risk was 76 bps for FY'22. NPL ratio improved to 5.25% (6.07% including POCI1) from 5.46% (including POCI 6.48%) as at September-end
  • Provision coverage ratio improved to 93% (144% including collateral held) from 87% (140% including collateral held) as at September-end

Continued focus on strong total shareholder returns with recommended dividend2 payout of 60%

  • The Board has recommended a dividend of AED 0.55 per share (2021: AED 0.37 per share), equivalent to 60% of net profit (2021: 49%), translating to a pay out of AED 3.827 bn (2021: AED 2.574 bn)
  • The proposed dividend will consist of cash and a stock dividend in the ratio of 33% (cash dividend of AED 0.18 per share) and 67% (stock dividend in lieu of cash of AED 0.37 per share) respectively. The issuance of stock dividend will strengthen the capital position of the Bank to support reinvestment into further growth of core businesses
  • The shares will be issued at a price of AED 7.10 per share arrived by applying a c.22% discount on the six month average share price of the Bank for the period from 1 July 2022 to 31 December 2022. This is subject to approvals by the Central Bank of the UAE, Securities and Commodities Authority (SCA) and by shareholders at the Annual General Meeting

1 POCI: Purchase or originated credit-impaired financial assets

2 Subject to approval by regulators and shareholders at the Annual General Meeting


“As a systemically important bank in the UAE, ADCB plays a key role in enabling sustainable economic growth. The Bank is building long-term resilience through strong financial performance, driven by a clear strategy, a positive culture and a robust governance framework.

The Bank prioritises best practice corporate governance, ongoing digital transformation and ESG to enhance long-term institutional resilience and contribute to the UAE's economic and social fabric. In the last year, we have embedded ESG into our corporate strategy with full board oversight, while advancing new green financing initiatives.

The Bank achieved broad-based growth to deliver a record full-year net profit. A solid financial position means that ADCB is well placed to navigate complex challenges and to generate new opportunities in an increasingly dynamic and diversified economy. Our achievements are cementing the building blocks that will ensure ADCB remains at the forefront of the financial sector and creates long-term value for all stakeholders.

On behalf of the Board, I would like to express our sincere appreciation for His Highness Sheikh Mohamed Bin Zayed Al Nahyan, the UAE President and Ruler of Abu Dhabi; to His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Court; and to the UAE Central Bank, for their continued guidance and support.”

ALA'A ERAIQAT – Group Chief Executive Officer

“Two years into our new strategy to drive digital-enabled growth, I am pleased to report record results for the Bank. Full-year and quarterly net profit both increased by 23% to AED 6.434 billion and AED 1.784 billion respectively. This translated to a return on average tangible equity of 13.3% for 2022.

ADCB is making significant progress to maintain a leadership position in customer service – from digital innovation and enhancement of data protection, to nurturing talent and applying best practice in ESG.

In 2022, the Bank achieved loan growth of 6%, with AED 65 billion of new credit extended to diverse economic sectors. We delivered double-digit growth in net interest income and fee income, while our leading franchise attracted AED 44 billion growth in customer deposits to exceed the AED 300 billion milestone. Additionally, the Bank's cost to income ratio improved 480 basis points year on year to 29.6% in the fourth quarter, at the lower end of our medium-term guidance, partially supported by one-off gains recorded in the quarter.

The Group's major subsidiaries are also performing well, with Al Hilal Bank welcoming over 350,000 registered users in the first year since the launch of its super app, while ADCB Egypt reported a strong rise in 2022 net profit.

ADCB continues to invest significantly to automate processes and facilitate digital access to products and services. In 2022, the ADCB mobile banking subscriptions surpassed the one million mark for registrations, and our onboarding app allowed customers to open more than 250,000 new accounts digitally.

Our focus on nurturing talent and a positive culture is reflected in ADCB's inclusion in the Forbes 'World's Best Employers' survey in 2022. We are particularly pleased that the Bank is achieving tangible business benefits by prioritising Emiratisation. Our reputation as an employer of choice supported the recruitment of over 250 UAE nationals in 2022, taking the total to 1,910 - 38% of the Group's employee base.

As the UAE develops its climate agenda further by hosting the COP28 conference this year, ADCB stands ready to make a significant contribution to mobilise capital and to support our clients transition to a low-carbon economy. We took a significant first step in 2022 through the issuance of our inaugural USD 500 million green bond to drive investment into green initiatives.

Looking ahead, we are excited about the opportunities for ADCB to help drive the dynamic transformation of the UAE economy.”


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