Abu Dhabi Commercial Bank (ADCB) has unveiled a bold growth strategy to double its net profit to AED 20 billion over the next five years, aiming for an annual growth rate of approximately 20%. This ambitious plan aligns with the UAE’s progressive economic trajectory, positioning ADCB as a pivotal player in the country’s financial sector. The bank also plans to increase year-on-year dividends to approximately AED 25 billion over the same period, marking a 50% rise compared to the previous five years. Additionally, ADCB targets an annual return on equity exceeding 15%, while maintaining robust regulatory compliance and capital adequacy.
The strategy was announced alongside ADCB’s FY’24 financial performance, which saw a profit before tax of AED 10.585 billion, up 26% year on year. Net profit after tax rose 15% to AED 9.419 billion, with a recommended dividend of AED 0.59 per share. The bank’s net interest income increased by 7% to AED 13.226 billion, while non-interest income surged 39% to AED 6.254 billion. Operating income grew 15% to AED 19.480 billion, with a cost to income ratio improving by 130 basis points to 31%.
ADCB’s total assets reached AED 653 billion, up 15% year on year, with net loans increasing 16% to AED 351 billion. Customer deposits rose 16% to AED 421 billion, driven by a significant increase in current and savings accounts (CASA) deposits. The bank’s cost of risk improved to 0.58%, and the non-performing loan ratio decreased to 3.04%, its lowest level in five years.
Chairman Khaldoon Khalifa Al Mubarak emphasized ADCB’s commitment to operational excellence and growth, leveraging technology and talent to enhance customer experience. CEO Ala’a Eraiqat highlighted the bank’s strong market position and its role in driving UAE’s economic progress through innovative financing solutions.
ADCB’s strategic growth blueprint underscores its alignment with the UAE’s economic ambitions, including significant investments in AI and digital technologies to boost operational efficiency and customer experience. This vision positions ADCB as a leader in the UAE’s banking sector, poised for substantial expansion and transformation.
ADCB’s financial performance and strategic vision reflect its dedication to creating enduring shareholder value and contributing to the UAE’s status as a global financial powerhouse. With a focus on digital transformation and operational excellence, ADCB is set to play a pivotal role in the UAE’s economic evolution.
As ADCB embarks on this transformative journey, it remains committed to delivering high-quality financial services, leveraging its strong franchise and network capabilities. The bank’s emphasis on innovation and customer-centric solutions will be crucial in achieving its ambitious targets and maintaining its position as a leading financial institution in the UAE.
ADCB’s growth strategy not only aligns with the UAE’s economic goals but also reflects the country’s broader vision for economic diversification and sustainable development. By investing in talent and technology, ADCB aims to drive growth through innovative financing solutions, further solidifying its role in the UAE’s financial landscape.
In conclusion, ADCB’s new growth strategy marks a significant milestone in its journey to become a global financial leader. With its focus on growth, innovation, and shareholder value, ADCB is well-positioned to achieve its ambitious targets and contribute to the UAE’s economic success.
