Abu Dhabi Commercial Bank (ADCB) has unveiled a robust growth strategy targeting a doubling of its net profit to Dh20 billion within five years, alongside an annual growth rate of approximately 20 per cent. The bank aims to distribute Dh25 billion in dividends over the next five years, marking a 50 per cent increase compared to the prior five-year period. As part of this strategy, ADCB is committed to achieving an annual return on equity of over 15 per cent while maintaining strong regulatory ratios and sufficient capital reserves to drive future expansion.
Impressive Full-Year Performance
For FY’24, ADCB reported a net profit after tax of Dh9.419 billion, a 15 per cent increase year on year. Profit before tax reached Dh10.585 billion, up 26 per cent. The bank’s net interest income rose seven per cent to Dh13.226 billion, while non-interest income surged 39 per cent to Dh6.254 billion.
Operating income for the year grew 15 per cent to Dh19.480 billion, with the cost-to-income ratio improving by 130 basis points to 31 per cent. Operating profit before impairment charges increased 18 per cent to Dh13.448 billion. The board recommended a dividend of Dh0.59 per share, amounting to a total payout of Dh4.319 billion, equivalent to 46 per cent of the bank’s net profit.
Strong Q4’24 Results
In the fourth quarter, ADCB posted a profit before tax of Dh2.884 billion, marking a 15 per cent year-on-year increase. Net profit after tax reached Dh2.573 billion, up five per cent. Net interest income rose three per cent to Dh3.505 billion, while non-interest income saw a significant increase of 57 per cent, reaching Dh1.962 billion. Net fees and commission income grew by 25 per cent, driving a 17 per cent rise in operating income to Dh5.467 billion.
Asset Growth and Loan Performance
ADCB’s total assets reached Dh653 billion at the end of FY’24, a 15 per cent year-on-year increase and a two per cent rise quarter on quarter. Net loans grew 16 per cent to Dh351 billion, adding Dh49 billion year on year and Dh7 billion quarter on quarter. Since 2020, the bank’s loan portfolio has grown at a compound annual growth rate (CAGR) of 10 per cent. New credit extended during the year totaled Dh112 billion, while repayments amounted to Dh61 billion.
Strong Deposit Base
Total customer deposits increased 16 per cent year on year to Dh421 billion, with a CAGR of 14 per cent since 2020. Quarter-on-quarter growth stood at four per cent, adding Dh14 billion. Current and savings account (CASA) deposits reached Dh186 billion by the end of December, representing 44 per cent of total deposits, compared to 42 per cent in Q3’24. CASA deposits grew by Dh16.45 billion, or 10 per cent, during the fourth quarter.
Outlook
ADCB’s robust performance in FY’24 and ambitious growth strategy underline its commitment to delivering sustained value for shareholders. With plans to double profits, increase dividends, and maintain a healthy financial position, the bank is well-positioned to achieve its long-term objectives.
