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Abu Dhabi, July 20 // Abu Dhabi Commercial Bank announced a 25% increase in net profits to reach 3.811 billion dirhams during the first half of this year, compared to the same period last year.
The bank stated, in a statement today, that net interest income increased by 23% to reach 5.782 billion dirhams during the first half of 2023, while net non-interest income increased by 28% to reach 2.19 billion dirhams, and income from operating operations increased by 24% to reach 7.971 billion dirhams.
The cost to income ratio improved by 450 basis points compared to the first half of 2022, to reach 32%, and operating profit before provisions increased by 33%, to reach 5.421 billion dirhams.
Total assets increased by 9% compared to the end of the first half of last year and by 5% compared to the end of 2022 to reach 521 billion dirhams, and net loans and advances increased by 12% compared to the end of the first half of last year and by 5% compared to the end of the year 2022 to reach 272 billion dirhams, while the bank continued to provide new credit facilities amounting to 38 billion dirhams during the first half of 2023.
Total customer deposits amounted to 316 billion dirhams, an increase of 8% compared to the end of the first half of last year, and an increase of 2% compared to the end of 2022. Customer deposits in current and savings accounts amounted to 150 billion dirhams by the end of June 2023, which constituted 48% of total customer deposits.
The capital adequacy ratio reached 16.11%, the first-tier ratio reached 13.39%, the liquidity coverage ratio (LCR) reached 130.4%, and the cost of risk reached 71 basis points during the second quarter of 2023 and 73 basis points during the first half of 2023.
The non-performing loan ratio reached 5.10% (the non-performing loan ratio, including net impaired assets (POCI), was 5.68%), the lowest since December 2020, while the provision coverage ratio improved to 98.5% compared to 93.0% at the end of December 2022. The coverage ratio of provisions when collaterals were added increased to 150% compared to 144% at the end of December 2022.
Alaa Erekat, Group CEO of Abu Dhabi Commercial Bank, said: We are pleased to announce the achievement of record profits during the first half of the year 2023, which amounted to 3.811 billion dirhams, an increase of 25% compared to the same period last year, which represents an increase in the return on average shareholders’ equity by 14.8%.
Erekat added: Abu Dhabi Commercial Bank continues its growth path, relying on its strong position in the markets and its achievements in digital transformation in light of the strong economic fundamentals that the United Arab Emirates enjoys. Abu Dhabi Commercial.
Erekat continued: Our digital strategy had a major role in supporting the expansion of business and enhancing the conservative approach to risk management, in light of Abu Dhabi Commercial Bank’s keenness to provide digital banking solutions and services that guarantee the highest levels of security and protection for customer information and data. For example, Abu Dhabi Commercial Bank implemented the digital authentication service using a face print through its digital banking channels, which is the latest technology to verify the identity of customers in an instant and secure manner. More than 286,000 customers were able to use this service within just one month of its launch, which helped to greatly enhance the customer experience.
Abu Dhabi Commercial Bank Group CEO said: The bank’s focus on distinguishing its services resulted in strong growth in the customer base. The Abu Dhabi Commercial Bank Group in the UAE, including Al Hilal Bank, achieved a record in the first half of this year by attracting 260,000 new individual customers, in addition to attracting 3,500 new institutional and corporate customers. Abu Dhabi Commercial Bank also successfully launched a range of new products during the first half of this year, to keep pace with the requirements and needs of customers, as about 30,000 new digital accounts were opened monthly, and the card business achieved the best results ever during the second quarter, as the bank issued more than 50,000 new credit cards, with the launch of our latest product in this field, which is the “365 Cashback Credit Card”, which was very popular with customers.
He added: On the other hand, we recently announced the launch of the new identity of the Corporate Banking Services Group to become called the “Corporate Banking and Investment Services Group”, in a move that reflects the expansion of the range of services provided by the Bank to various institutions and companies, especially in light of the outstanding achievements it achieves in the field of structured financing risk management and capital market solutions. The Corporate Banking and Investment Services Group also achieved record income from fees and commissions during the second quarter, and achieved remarkable growth through the development of many banking and investment services and products.
For his part, Deepak Kohler, Chief Financial Officer of Abu Dhabi Commercial Bank Group, said: Abu Dhabi Commercial Bank continues to record strong results in profits, as it achieved during the second quarter of 2023 a growth of 23% compared to the same period of the previous year in light of the growth in revenues and the disciplined management of costs aimed at meeting the challenges of inflation in the economic environment.
