Abu Dhabi, 27 April 2016

Abu Dhabi Commercial Bank PJSC ("ADCB" or the "Bank") today reported its financial results for the first quarter of 2016 ("Q1'16").

Financial highlights (31 March 2016)

Operating performance  

-    Operating income of AED 2.112 billion was 5% higher quarter on quarter and 4% lower year on year.  Q1'15 benefited from significant one-offs, which were not repeated this year

-    Total net interest and Islamic financing income of AED 1.573 billion was 7% higher quarter on quarter, driven by higher volumes and 4% lower year on year, impacted by higher funding costs

-    Net income from Islamic financing of AED 150 million was 3% lower quarter on quarter, and recorded a strong growth of 15% year on year

-    Non-interest income of AED 539 million was stable quarter on quarter and 2% lower year on year

-    Net retail banking fees (excluding brokerage) of AED 176 million for the quarter registered a strong 29% growth year on year, driven by higher loan volumes and credit card spend

-    Trading income of AED 122 million was up 33% quarter on quarter and stable year on year

       Resilient balance sheet, continued focus on improving sources of funding and liquidity

-    Total assets grew by 12% to AED 232 billion and net loans and advances increased by 11% to AED 157 billion over 31 March 2015, greater than the UAE banking industry average*

-    In a tight liquidity environment, deposits from customers increased 15% to AED 147 billion over 31 March 2015, well above the UAE banking industry average*

-    A strong deposit gathering franchise coupled with a leading cash management product offering resulted in low cost current and savings account (CASA) deposits increasing 11% to AED 65 billion over 31 March 2015 and comprising 44% of total deposits

-    Advances to stable resources at a healthy 89.0%

-    Customer deposit growth outpaced loan growth resulting in an improved loan to deposit ratio of 106.3%

       Capital and liquidity position continue to be at industry leading levels

-    Capital adequacy ratio of 18.09% and Tier 1 ratio of 14.74% as at 31 March 2016, post dividend payment of AED 2.3 billion in Q1'16. Total equity strengthened by AED 1.9 billion year on year to AED 27.3 billion as at 31 March 2016

-    Net lender of AED 22.6 billion in the interbank markets as at 31 March 2016

-    Strong liquidity ratio of 24.3%

       Cost to income ratio within our target range

-    Cost growth tightly managed with operating expenses of AED 738 million for Q1'16. Cost to income ratio for the quarter was 34.9% within our target range (Q4'15 - 35.5%)

-    Average interest bearing liabilities increased 8% year on year and cost of funds for the quarter was 1.17%, in line with tighter market liquidity

       Asset quality metrics remain strong, committed to maintaining a disciplined risk profile

-    As at 31 March 2016, NPL and provision coverage ratios were 3.4% and 112.1% respectively

-     Collective impairment charges were AED 209 million for the quarter, reflecting our prudent risk management approach to challenging market conditions

-   

*   Latest data available from the UAE Central Bank up to February 2016

Collective impairment allowances were 1.94% of credit risk weighted assets, well above the minimum 1.5% stipulated by the UAE Central Bank

Commenting on the Bank's performance Ala'a Eraiqat, Member of the Board and Group Chief Executive Officer, said:

"Following our strong results in 2015, we are pleased to announce a net profit of AED 1.021 billion in Q1'16. 2015 was a record year for the Bank, we outperformed our peers in many key measures; yet in a very challenging operating environment we remain committed to preserving and protecting the long term financial strength of the Bank in our pursuit of sustainable growth. We have made good progress in several key areas in the first quarter of 2016, while maintaining a rigorous control framework. We increased loans in core businesses and grew customer deposits faster than the industry. The underlying performance of our businesses remained strong with a return on equity of 16% and our capital adequacy ratio remained robust at 18.09%. In line with our prudent approach to risk management and in response to the prevailing market conditions and macro headwinds, we have increased our provision levels in Q1'16, compared to Q1'15, which benefited from one-offs which were not repeated this year. The Bank remains resilient to meet today's ongoing challenges.

We continue to grow our balance sheet in a granular and prudent manner in our core geography and core businesses. Our focus on the UAE market remains a key strategic pillar and a differentiator for ADCB. This position of strength enables us to deliver a superior customer service and build long-term value for our stakeholders."

Deepak Khullar, Group Chief Financial Officer, commented on the results:

"Our results reflect our ability to adapt to the changing macro environment. Whilst markets remain uncertain and volatile, our balance sheet remains resilient. We continue to place high priority on maintaining adequate sources of funding and liquidity. Despite the tightening liquidity environment and intense competition, our total customer deposits grew 15% year on year, driven by an increase in both CASA and time deposits, and our cost of funds increased to 1.17% in Q1'16 compared to 0.85% in Q1'15.

Our cost base continues to be efficiently managed, with a cost to income ratio of 34.9% for the quarter."

-Ends-

About ADCB (31 March 2016):
ADCB was formed in 1985 and as at 31 March 2016 employed over 4,500 people from 72 nationalities, serving retail customers and corporate clients in 49 branches, 3 pay offices and 2 branches in India, 1 branch in Jersey and representative offices in London and Singapore. As at 31 March 2016, ADCB's total assets were AED 232 billion.

ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate and currency derivatives and Islamic products, project finance and property management services.

ADCB is owned 58.08% by the Government of Abu Dhabi (Abu Dhabi Investment Council). Its shares are traded on the Abu Dhabi Securities Exchange. As at 31 March 2016, excluding treasury shares, ADCB's market capitalisation was AED 35 billion.

For further details please contact:
Investor Relations                                                               
Denise Caouki                                                                      
E: adcb_investor_relations@adcb.com

Corporate Communications                                                                                                              
Majdi Abd El Muhdi                                                                                                            
E: majdi.a@adcb.com

This document has been prepared by Abu Dhabi Commercial Bank PJSC ("ADCB") for information purposes only. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. This document is not intended for distribution in any jurisdiction in which such distribution would be contrary to local law or reputation.

The material contained in this press release is intended to be general background information on ADCB and its activities and does not purport to be complete. It may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. It is not intended that this document be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending on their specific investment objectives, financial situation or particular needs.

This document may contain certain forward-looking statements with respect to certain of ADCB's plans and its current goals and expectations relating to future financial conditions, performance and results. These statements relate to ADCB's current view with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond ADCB's control and have been made based upon management's expectations and beliefs concerning future developments and their potential effect upon ADCB.

By their nature, these forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond ADCB's control, including, among others, the UAE domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact and other uncertainties of future acquisition or combinations within relevant industries.

As a result, ADCB's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in ADCB's forward-looking statements and persons reading this document should not place reliance on forward-looking statements. Such forward-looking statements are made only as at the date on which such statements are made and ADCB does not undertake to update forward-looking statements contained in this document or any other forward-looking statement it may make.

© Press Release 2016