• Recommended dividend of AED 0.55 per share, equivalent to 60% of net profit

Abu Dhabi:– Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for 2022 (“FY’22”) and the fourth quarter of 2022 (“Q4’22”).

Record earnings driven by credit growth, higher net interest margin and diversified income streams

Key highlights – FY’22 vs. FY’21

  • Net profit of AED 6.434 bn increased 23% 
  • Net interest income of AED 10.194 bn increased 15%
  • Non-interest income of AED 4.151 bn increased 22%
  • Net fees and commission income of AED 2.110 bn increased 11%
  • Operating income of AED 14.344 bn increased 17%
  • Cost to income ratio of 34.1% improved by 60 bps
  • Operating profit before impairment charge of AED 9.456 bn increased 18%

Key highlights – Q4’22 vs. Q4’21

  • Net profit of AED 1.784 bn increased 23% 
  • Net interest income of AED 2.918 bn increased 30%
  • Net fees and commission income of AED 620 mn increased 19%
  • Non-interest income of AED 1.486 bn increased 45%
  • Operating income of AED 4.403 bn increased 34%
  • Cost to income ratio of 29.6% improved 480 bps
  • Operating profit before impairment charge of AED 3.101 bn increased 44%

Strong balance sheet supported by robust growth in loans and customer deposits

(All numbers are as at 31 December 2022 unless otherwise stated)

  • Total assets of AED 498 bn increased 13% from Dec’21
  • Net loans were AED 258 bn, up 6% (AED 14 bn) from Dec’21. New credit extended totalled AED 65 bn over the course of the year
  • Total interest earning assets of AED 406 bn were up 11% (AED 41 bn) over Dec’21
  • Total customer deposits of AED 309 bn increased 17% (AED 44 bn) from Dec’21. CASA (Current and savings account) deposits were AED 153 bn at December-end, and comprised 50% of total customer deposits
  • Capital adequacy and CET 1 ratios were 15.77% and 12.96% respectively
  • Liquidity coverage ratio (LCR) of 138.9%
  • Cost of risk was 76 bps for FY’22. NPL ratio improved to 5.25% (6.07% including POCI1) from 5.46% (including POCI 6.48%) as at September-end
  • Provision coverage ratio improved to 93% (144% including collateral held) from 87% (140% including collateral held) as at September-end

Continued focus on strong total shareholder returns with recommended dividend2 payout of 60%

  • The Board has recommended a dividend of AED 0.55 per share (2021: AED 0.37 per share), equivalent to 60% of net profit (2021: 49%), translating to a pay out of AED 3.827 bn (2021: AED 2.574 bn)
  • The proposed dividend will consist of cash and a stock dividend in the ratio of 33% (cash dividend of AED 0.18 per share) and 67% (stock dividend in lieu of cash of AED 0.37 per share) respectively. The issuance of stock dividend will strengthen the capital position of the Bank to support reinvestment into further growth of core businesses
  • The shares will be issued at a price of AED 7.10 per share arrived by applying a c.22% discount on the six month average share price of the Bank for the period from 1 July 2022 to 31 December 2022. This is subject to approvals by the Central Bank of the UAE, Securities and Commodities Authority (SCA) and by shareholders at the Annual General Meeting

-Ends-

  1. POCI: Purchase or originated credit-impaired financial assets
  2. Subject to approval by regulators and shareholders at the Annual General Meeting