Abu Dhabi Commercial Bank (ADCB) efforts to embrace digital innovation and applying best practices in ESG is bearing fruits as the bank declared AED6.434 billion ($1.75 billion) in net profits for the fiscal year 2022, an increase of 23 percent compared to FY 2021.
ADCB’s net interest income rose to AED10.194 billion ($2.77 billion), an increase of 15 percent compared to FY 2021, while non-interest income increased by 22 percent to AED4.151 billion ($1.13 billion). Net fees and commission income increased 11 percent to AED2.110 billion and operating income 17 percent to AED14.344 billion ($3.9 billion).
For the fourth quarter, ADCB reported an increase in net profit of AED1.784 billion ($0.48 billion), up 23 percent year-on-year. Net interest income of AED2.918 marked a 30 percent increase and net fees and commission income of AED620 million represented a 19 percent rise compared to 4Q 2021.
ADCB’s ongoing digital transformation and ESG initiatives
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 profits both increased by 23 percent to AED6.434 billion and AED1.784 billion respectively. This translated to a return on average tangible equity of 13.3 percent for 2022.
“We took a significant first step in 2022 through the issuance of our inaugural $500 million green bond to drive investment into green initiatives. ADCB stands ready to make a significant contribution to mobilise capital and to support our clients transition to a low-carbon economy.”
The board recommended a dividend of AED0.55 per share, equivalent to 60 percent of net profit for a total payout of AED3.827 billion ($1.04 billion). In 2021, the dividend was AED0.37 per share.
Khaldoon Al Mubarak, Chairman of ADCB, added: “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.
“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. 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.”
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