- ADCB’s Q4 net profit rose 38% year-on-year to AED 2.45 billion, beating analyst forecasts. Strong performance driven by 17% increase in net interest income.
- Retail banking was a highlight, with record lending in personal loans, mortgages and auto loans. ADCB added 220,000 new credit card customers.
- Full year 2022 results solid, with 17% annual growth in both net loans and customer deposits. Bank proposed significantly higher 2023 dividend on robust profits.
Abu Dhabi Commercial Bank (ADCB) has kicked off 2023 with robust fourth quarter financial results, highlighting the UAE banking sector’s resilience.
The bank reported a 38% year-on-year rise in Q4 net profit to AED 2.45 billion, handily beating analysts’ forecasts of AED 1.97 billion. This strong performance was driven by a 17% increase in net interest income to AED 3.41 billion, as well as a one-time AED 490 million gain from the sale of its property unit.
ADCB’s retail banking business went from strength to strength, with personal loans, mortgages and auto loans reaching record highs last year. The bank also cemented its position as the top credit card issuer in the UAE, adding 220,000 new card customers in 2023 – an 82% jump over 2022. Digital onboarding and partnerships with providers like Talabat fueled this growth.
Overall, ADCB registered robust 17% annual increases in both net loans and customer deposits for the full year 2022, underscoring its strong fundamentals. The bank proposed a significantly higher 2023 dividend payout, buoyed by its robust profits.
ADCB’s strong results mirror the ongoing economic recovery in the UAE, driven by higher oil prices and the country’s proactive pandemic response. As the nation gears up to host Expo 2020 later this year, banks like ADCB are well positioned to benefit from the expected pickup in business activity and consumer demand.
With its solid retail banking franchise, increased adoption of digital services and focus on customer centricity, ADCB seems poised for further success in 2023. The bank’s latest earnings highlight the accelerating momentum in the UAE banking sector as the country emerges strongly from the pandemic slowdown.
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Last Updated on February 2, 2024 by Safiya K
