ADCB Net Profit Rises 76% To AED 2.524 Bn In H1’21
(UrduPoint / Pakistan Point News / WAM - 19th Jul, 2021) ABU DHABI, 18th July 2021 (WAM) - Abu Dhabi Commercial Bank (ADCB) reported on Sunday a 76 per cent jump in first-half net profit to AED2.524 billion on the back of higher fee income, lower cost of funds and improved cost to income ratio in the second quarter, Khaleej Times reported.
Khaldoon Khalifa Al Mubarak, chairman of ADCB said the bank has successfully navigated the many challenges presented by Covid-19 to deliver a robust financial performance in the first half of 2021.
"This has been driven by the disciplined implementation of our five-year strategy aiming to accelerate the digital transformation, grow new business lines, and enhance efficiencies across the group," he said.
In a statement, Al Mubarak said the growth in net profit is a result of the increase in a diversified revenue stream, disciplined cost control and a prudent approach to risk management. "As the business environment continues to improve, ADCB’s strong balance sheet, with comfortable capital and liquidity positions, provides it with a solid foundation for future growth."
Throughout the global pandemic, the bank stood by its key stakeholders, particularly customers and the wider community. "This is deeply rooted in a strong culture of personal and institutional responsibility, fostered through best-practice governance. These qualities will ensure that ADCB remains at the forefront of the UAE’s banking industry, playing an important role in driving sustainable economic growth," said Al Mubarak.
Ala’a Eraiqat, group chief executive officer, said ADCB Group has continued to demonstrate clear focus and drive to deliver strong financial performance and to provide continued excellence in customer service.
"Our solid fundamentals and resilience are reflected in a wide range of metrics, including sustained growth in CASA deposits, lower cost of funds, increased fee income, accelerated digital transformation, and a continuously improving cost to income ratio," said Eraiqat.
The bank’s cost to income ratio improved 150 basis points year on year to 33.4 per cent in the second quarter, approaching our medium-term guidance of 29 per cent to 32 per cent. "We are on track to exceed our target of AED1 billion of merger synergies, having realised AED661 million in the first six months of the year, and we continue to implement additional cost discipline measures," the bank statement said.
CASA (current account and savings accounts) deposits of AED141.9 billion rose AED14.4 billion during H1’21, and were 57 per cent of total customer deposits. Total customer deposits surged five per cent to AED250.6 billion sequentially and 0.3 per cent lower than in December 2020.
Net loans grew 1.0 per cent to AED237.8 billion sequentially and 0.5 per cent lower than in December 2020 while capital adequacy (Basel III) and CET 1 ratios were 16.32 per cent and 13.20 per cent respectively, the bank said.
ADCB said its key subsidiaries are advancing their growth strategies. Al Hilal Bank is on schedule to launch a new digital platform in the fourth quarter that will offer an extensive range of Islamic financial solutions to retail customers. ADCB Egypt is growing rapidly, with second-quarter net profit up 218 per cent year on year, as net loans and deposits increased 19 per cent and 20 per cent respectively during the first six months of 2021.