Abu Dhabi Commercial Bank (ADCB) Q3 2024 earnings summary

Executive summary

• Achieved record 9M'24 profit before tax of AED 7.702 bn, up 30% YoY; Q3'24 profit before tax AED 2.678 bn, up 34% YoY and 3% QoQ.

• 9M'24 net profit after tax reached AED 6.846 bn with ROATE of 14.8%; Q3'24 net profit AED 2.390 bn, ROATE 15.3%.

• Reviewed interim financials for the nine months ended September 30, 2024, prepared in accordance with IAS 34; no material misstatements identified by the independent auditor.

• The Group operates primarily in the UAE, with diversified activities in retail, corporate, private, Islamic banking, and property management.

• MSCI ESG rating upgraded to 'AA'; digital engagement surpassed 2 million subscriptions, representing 90% of the customer base.

Financial highlights

• Total assets increased to AED 638.8 billion as of September 30, 2024, from AED 567.2 billion at year-end 2023.

• Net profit for the nine months was AED 6.85 billion, up from AED 5.75 billion year-over-year.

• Total net interest income for 9M'24 was AED 9.721 bn, up 8% YoY; non-interest income AED 4.292 bn, up 32% YoY.

• Operating income grew 15% YoY to AED 14.013 bn; operating profit before impairment up 16% YoY.

• Basic and diluted EPS for the period was AED 0.86, up from AED 0.73.

Outlook and guidance

• FY'24 loan growth guidance revised to 16%-17% (from c.15%); medium-term guidance now 'low-double digits' annually.

• Net interest income growth guidance for FY'24 at c.8%; medium-term at high-single digit.

• Cost of risk guidance improved to <55 bps for FY'24 and <60 bps medium-term.

• ROATE guidance >14%; CET1 ratio guidance >12%; dividend payout ratio 40%-50%.

• The results for the nine months are not necessarily indicative of the full year 2024 performance.