ADCB reports record half-year net profit of AED 3.811 bn, up 25%, and Q2 net profit of AED 1.932 bn, up 23%


Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)today reported its financial results for the second quarter of 2023 (“Q2’23”).

Strong performance in Q2’23 driven by broad-based income growth and improved efficiency metrics.

Selected financial metrics for Q2’23

1.932 bn

Net profit (AED)


Return on average tangible equity


Liquidity coverage ratio:


Net interest margin:


CET1 ratio:

71 bps

Cost of risk:

Key highlights – Q2’23:

  • Net profit of AED 1.932 bn increased 3% QoQ and 23% YoY
  • Net interest income of AED 2.930 bn increased 3% QoQ and 14% YoY
  • Non-interest income of AED 1.129 bn increased 6% QoQ and 22% YoY
  • Operating income of AED 4.059 bn increased 4% QoQ and 16% YoY
  • Cost to income ratio improved 260 basis points YoY to 32.5%
  • Operating profit before impairment allowances of AED 2.740 bn increased 2% QoQ and 21% YoY.

Key highlights – H1’23 vs. H1’22:

  • Net profit of AED 3.811 bn increased 25%
  • Net interest income of AED 5.782 bn increased 23%
  • Non-interest income of AED 2.190 bn increased 28%
  • Operating income of AED 7.971 bn increased 24%
  • Cost to income ratio improved 450 basis points YoY to 32.0%
  • Operating profit before impairment allowances of AED 5.421 bn increased 33%

Net loan growth of 5% in H1’23, while capital position strengthened:

  • Total assets of AED 521 bn increased 9% from June’22 and 5% from Dec’22
  • Net loans of AED 272 bn were 12% higher from June’22 and up 5% from Dec’22. New credit extended totalled AED 38 bn in the first half of the year
  • Total customer deposits of AED 316 bn were 8% higher from June’22 and up 2% from Dec’22.

CASA (Current and Savings account) deposits were AED 150 bn at June-end, and comprised

48% of total customer deposits

  • Capital adequacy and CET1 ratios were 16.11% and 13.39% respectively
  • Liquidity coverage ratio (LCR) was 130.4%
  • Cost of risk was 71 bps for Q2’23 and 73 bps for H1’23, while NPL ratio of 5.10% (5.68% including POCI) was at the lowest level since Dec’20. Provision coverage ratio improved to 98.5% from 93.0% at Dec-end. Including collateral, provision coverage ratio increased to 150% from 144% at Dec-end


Group Chief Executive Officer:

ADCB is experiencing solid growth momentum and continues to set new records, with first half net profit up 25% year on year at AED 3.811 billion, which translates into a return on average tangible equity of 14.8%.

The Bank’s strong market position and digital innovation are driving growth against a backdrop of the UAE’s robust economic fundamentals. In the first half, ADCB extended AED 38 billion in new credit across diverse economic sectors and to the retail segment, resulting in net loan growth of 5% during the period. In tandem, deposits have also increased by AED 7 billion, reflecting the trust that customers place in our franchise.

Our digital-led strategy is underpinning the Bank’s expansion and approach to risk management. For example, the Bank is leading on data security, rolling out ADCB FacePass authentication to over 286,000 of our digital subscribers within just one month.

Deployment of this very latest biometric technology has streamlined onboarding and digital transactions, significantly enhancing the customer experience.

The Bank’s focus on service excellence is translating into strong growth in our customer base. In the first half, ADCB attracted a record of over 260,000 new retail customers through its UAE operations(1), and over 3,500 new corporate clients.

In parallel, ADCB has achieved a series of successful product launches this year that have been closely attuned to customer behaviour and needs. We have been trending at approximately 30,000 new digital account openings per month and Q2 was the Bank’s most successful quarter ever for our cards business.

Over 50,000 new primary credit cards were issued, with our newest product, the “365 Cashback Card”, proving highly popular with customers.

ADCB has rebranded its Wholesale Banking business as the “Corporate and Investment Banking Group” (CIBG) to better reflect our full client proposition, including structured finance, risk management and capital markets. This year, the Bank has advised on three major UAE IPOs as well as eight debt capital market transactions, reinforcing our standing as a regional leader in investment banking. CIBG reported record fee income in the second quarter, with growth driven by an enhanced product and service offering.

Amid global economic uncertainty, the UAE economy continues to benefit from consistent investment flows as well as robust consumer and business confidence. Our strong growth trajectory is reinforcing the Bank’s financial position, enhancing resilience and creating significant shareholder value.

ADCB is delivering high quality earnings growth, reporting a 23% year on year rise in Q2 net profit, characterised by a broad-based increase in revenues and disciplined cost management in the face of an inflationary environment.

Healthy loan growth, coupled with rising benchmark rates, have driven a 14% year on year increase in Q2 net interest income. It is also pleasing to see continued diversification in revenue streams. Quarterly fee and trading income were up 43% and 48% year on year, respectively. This contributed to a 22% rise in non-interest income, which represented 27.8% of total operating income in Q2, up from 26.4% a year earlier.

While successfully maintaining credit growth, we have retained a prudent approach to lending and continued to diversify our asset portfolio.

ADCB’s UAE Retail Banking business(1) has experienced sustained momentum, with the cards business, personal loans, mortgages and auto loans delivering combined asset growth of 15% year on year in the first half. The Corporate and Investment Banking Group has continued to attract major GRE and corporate clients in the UAE and the wider region, with the business also reporting a year on year increase of 15% in gross loans.

Meanwhile, the Bank has reduced its cost to income ratio to 32.0% in H1’23, from 36.5% a year earlier, in line with our medium-term guidance. While topline growth has been an important factor, we have also effectively managed our cost base, prioritizing investment in people, technology and compliance required to drive further development of key businesses.

One of the key strengths of ADCB is its ability to adapt effectively to changes in the operating and regulatory landscape and the Bank is progressing well with preparations for the introduction of a 9% corporate income tax rate in January 2024.

We are also making strong progress on our ESG agenda, particularly in recognition of the urgency for coordinated action on climate change and its importance for our internal and external stakeholders.

During the second quarter, we initiated a programme to develop a comprehensive climate strategy in line with the UAE’s Net Zero by 2050 Strategic Initiative. This involves Group-wide collaboration to set our ambition and commitments, and to develop our suite of green products and services. Importantly, a baseline assessment of financed emissions is being carried out in accordance with PCAF (Partnership for Carbon Accounting Financials) standards, which will allow us to measure progress on decarbonisation of our loan portfolio in the coming years.

With the Bank benefiting from robust capital and liquidity positions, we see continued progress on ESG as an integral part of building organizational resilience.