Abu Dhabi Commercial Bank (ADCB.AD) announced a 38% increase in fourth-quarter profit, surpassing analysts’ predictions. Higher interest and financing income, along with a one-off gain from the sale of its property unit, fueled this growth.
As the second-largest bank in Abu Dhabi, ADCB proposed a cash dividend of AED 0.65 per share for the entire year 2023, a notable increase from the cash and stock payouts in 2022 of AED 0.18 and AED 0.37 per share, respectively.
For the three months ending December 31, the bank reported a net profit of AED 2.45B ($667.14M), compared to AED 1.78B in the same period the previous year, surpassing the average forecast of AED 1.97B by three analysts polled by LSEG.
ADCB Achieves 17% YoY Growth in Q4 Net Interest Income
In the fourth quarter, net interest income rose by 17% year-on-year to AED 3.41B. ADCB strategically divested 80% of its total ownership in Abu Dhabi Commercial Properties in December, securing a net gain of AED 490M through the sale to Nine Yards Plus Holdings, a unit of investment vehicle Ethmar International Holding.
Known for its robust retail business, ADCB highlighted that personal loans, mortgages, and auto loans reached their peak levels in 2023.
The cards business also marked its best year ever, becoming the top issuer of credit cards in the fourth quarter, boasting a 21% market share in the UAE, according to Gulf Business.
Throughout 2023, the bank acquired 220,000 new credit card customers, representing an 82% increase from the previous year. This growth was driven by digital onboarding and new partnerships, including one with the online food delivery app Talabat, which resonated well with customers.
ADCB recorded net loans of AED 302B for 2023, marking a 17% increase from 2022, while total customer deposits reached AED 363B, up 17% from the previous year.