Abu Dhabi Commercial Bank (ADCB) has unveiled an ambitious growth strategy that aims to double its net profit to Dh20 billion within the next five years. The bank targets an annual growth rate of approximately 20 percent during this period. Additionally, ADCB plans to increase its year-on-year paid-out dividends to around Dh25 billion, reflecting a 50 percent rise compared to the total dividend payout from the previous five years.

The announcement comes as ADCB reported a profit before tax of Dh10.585 billion for the fiscal year 2024, marking a significant 26 percent increase. In the fourth quarter of 2024, the bank’s profit before tax reached Dh2.884 billion, up 15 percent year on year. The net profit after tax also grew to Dh9.419 billion for FY’24, a 15 percent rise, while the fourth quarter net profit increased by 5 percent to Dh2.573 billion.

For the full year, ADCB experienced a seven percent rise in net interest income, totaling Dh13.226 billion, while non-interest income surged by 39 percent to Dh6.254 billion. Overall operating income climbed 15 percent to Dh19.480 billion, and the cost to income ratio improved by 130 basis points to 31 percent. Before accounting for impairment charges, the operating profit saw an 18 percent increase, reaching Dh13.448 billion.

In the fourth quarter alone, profit before tax rose 15 percent to Dh2.884 billion, with net profit after tax at Dh2.573 billion. The bank’s net interest income for this quarter increased by three percent to Dh3.505 billion. Non-interest income saw a remarkable 57 percent increase to Dh1.962 billion, aided by a 25 percent rise in net fees and commission income. Overall, operating income for Q4’24 grew by 17 percent to Dh5.467 billion.

ADCB’s total assets grew by 15 percent year on year, reaching Dh653 billion, and net loans amounted to Dh351 billion, reflecting a 16 percent increase year on year. In FY’24, new credit extended totaled Dh112 billion, while customer deposits reached Dh421 billion, marking a 16 percent year-on-year increase. The current and savings account (CASA) deposits rose significantly by Dh16.45 billion during Q4’24, contributing to 44 percent of total customer deposits.

The bank’s cost of risk improved to 0.58 percent in FY’24 from 0.79 percent in FY’23, and the non-performing loan ratio dropped to 3.04 percent, the lowest level in five years. The provision coverage ratio stood at 110.0 percent, with collateral included, reaching 188 percent, the highest in five years.

Khaldoon Khalifa Al Mubarak, Chairman of ADCB, stated that the bank has created substantial shareholder value in the past five years and remains committed to operational excellence. He emphasized that the new strategy would facilitate significant core business expansion while leveraging the bank’s capabilities and networks. Meanwhile, Ala’a Eraiqat, ADCB’s Group Chief Executive Officer, highlighted the bank’s strong market position and substantial balance sheet growth, noting a 59 percent increase in assets since 2020. He also pointed out that the UAE’s economy is supported by robust fundamentals, enabling ADCB to drive growth through innovative financing solutions.