Abu Dhabi Commercial Bank (ADCB) has announced a robust financial performance for the first nine months of 2024, reporting a 30% increase in profit before tax, reaching Dh7.702 billion. Net profit after tax stood at Dh6.846 billion, reflecting the bank’s strong strategic growth across various sectors.
The bank attributed its impressive performance to strategic efforts focused on expanding market share in corporate banking, investment services, and growing its retail customer base. ADCB has also benefited from favourable economic conditions in the UAE, which have bolstered both corporate and retail banking credit.
In Q3 2024 alone, ADCB reported a 34% increase in profit before tax, amounting to Dh2.678 billion, with net profit after tax hitting Dh2.39 billion. Despite a 1% decline in net interest income, which totalled Dh3.144 billion, the bank saw a significant 49% rise in non-interest income, reaching Dh1.569 billion. This surge was driven by a 42% increase in net commission and fee income.
“The bank’s performance has been characterised by strong loan growth, a notable rise in fee and commission income, as well as enhanced efficiencies and credit quality,” ADCB stated in its quarterly report.
By the end of September 2024, ADCB’s total assets grew by 19% to Dh639 billion, with net loans and advances to customers increasing by 21% to Dh344 billion. Customer deposits in current and savings accounts reached Dh169 billion, further solidifying the bank’s financial position.
ADCB also reported a capital adequacy ratio of 16.68%, with a common equity tier 1 (CET1) ratio of 13.11%. Its liquidity coverage ratio was a strong 136.3%, while the loan-to-deposit ratio stood at 84.6%. The bank’s cost of risk showed significant improvement, dropping to 0.42% in Q3 2024, compared to 0.73% in the previous year, with the nine-month cost of risk at 0.52%.
The bank’s strong financial performance underscores its commitment to growth and operational efficiency, positioning it for continued success amid favourable UAE economic fundamentals.
