Abu Dhabi, 31 January 2023 — Abu Dhabi Commercial Bank (ADCB) today reported its financial results for fiscal year (FY) 2022, with AED 6.434 billion in net profits, an increase of 23 percent compared to FY 2021.
The bank’s net interest income was to the tune of AED 10.194 billion, an increase of 15 percent compared to FY 2021, while non-interest income increased by 22 percent to AED 4.151 billion, compared to the previous year.
Net fees and commission income increased 11 percent to AED 2.110 billion, and operating income 17 percent to AED 14.344 billion. Cost to income ratio of 34.1 percent improved by 60 bps and operating profit before impairment charge increased 18 percent to AED 9.456 billion.
ADCB reported a strong increase in 4Q 2022 net profit of AED 1.784 billion, an increase of 23 percent compared to 4Q 2021. Net interest income of AED 2.918 marked a 30 percent increase and net fees and commission income of AED 620 million represented a 19 rise in 4Q 2022 compared to 4Q 2021.
The Board has recommended a dividend of AED 0.55 per share, equivalent to 60 percent of net profit, translating to a pay out of AED 3.827 billion. In 2021, the dividend was AED 0.37 per share, equivalent to 49 percent of net profit, with a total payout of AED 2.574 billion.
Khaldoon Al Mubarak, Chairman of ADCB, said, “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.”
He continued to say, “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.”
Al Mubarak added, “On behalf of the Board, I would like to express our sincere appreciation for President His Highness Sheikh Mohamed bin Zayed Al Nahyan; H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court; and the UAE Central Bank, for their continued guidance and support.”
Ala’a Eraiqat, Group Chief Executive Officer of ADCB, commented, “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 percent to AED 6.434 billion and AED 1.784 billion respectively. This translated to a return on average tangible equity of 13.3 percent for 2022.”
He pointed out that 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.
Eraiqat added that 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 US$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.”