ABU DHABI: Abu Dhabi Commercial Bank PJSC (ADCB) delivered a solid performance in the first quarter of 2022, despite ongoing global uncertainty, recording a net profit increase of 32 percent year-on-year (YoY) to AED 1.483 billion – equivalent to a return on average tangible equity of 12.6 percent.
According to its financial results which it released today, the Bank has continued to grow and diversify its loan book, with AED 13 billion of new credit extended in the first quarter.
Ala'a Eraiqat, Group Chief Executive Officer and Board Member, ADCB, commented, "We are making strong progress in implementing our five-year strategy to drive further value creation through increased market share, continued de-risking of the loan portfolio and investment in new growth opportunities, with an emphasis on digital.
"Our subsidiaries are also becoming key engines of growth. Al Hilal launched a 'super app' in February, providing a single platform for financial and lifestyle services. To date, the app has attracted over 40,000 registered users to its virtual marketplace, with more than 8,500 banking customers. ADCB Egypt has also recorded strong loan growth to achieve a 12 percent YoY increase in first quarter net profit in local currency terms."
In an important development for ADCB’s stakeholders, NMC Group’s core operations in the UAE and Oman completed a successful restructuring process and exited administration in March 2022. As a significant creditor, the Bank has consistently been proactive in supporting the rescue and turnaround of the company. This approach has resulted in the Bank receiving 37.5 percent of a new US$2.25 billion facility issued by NMC HoldCo SPV Ltd.
ADCB achieved strong growth in first-quarter net profit, supported by a significant improvement in cost of risk to historically low levels and continued diversification of the loan portfolio.
The Bank has maintained a robust financial position through the global pandemic and has successfully supported impacted customers. Impairment charges have progressively decreased as the economy has recovered -- and were 58 percent lower year on year in Q1 2022 -- contributing to a 36 basis point improvement in risk-adjusted net interest margin.
"We continue to further diversify the revenue mix and drive growth opportunities in areas such as digital banking, payments, as well as wealth and asset management. Net fees and commission income in the first quarter increased 10 percent year on year, driven by a substantial rise in trade finance commission as well as higher loan processing and card related fees," Eraiqat added.
Meanwhile, ADCB's investment in digital technology has continued through the launch of 10 new enhancements in the first quarter. More than 1 million customers are now subscribed to the Bank's digital platforms, while its ‘Hayyak’ onboarding app registered a record number of approximately 57,000 new customers in a single quarter.
The Bank maintains robust capital and liquidity positions and we are well-placed to pursue opportunities for growth in 2022.