Abu Dhabi Commercial Bank (ADCB) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with profit before tax up 26% to AED 10.6 billion and net profit after tax at AED 9.42 billion, capping a five-year transformation.

• Launched a new five-year strategy aiming to double net profit to AED 20 billion and maintain ROE above 15%, focusing on organic growth, digital transformation, and international expansion.

• Consolidated financial statements for 2024 were audited with an unqualified opinion, highlighting ECL allowances and IT system access controls as key audit matters.

• Recommended dividend of AED 0.59 per share, representing 46% of net profit and 59% of paid-up capital.

• The Group operates across retail, private, corporate, treasury, and property management segments, with diversified domestic and international operations.

Financial highlights

• Operating income grew 15% to AED 19.5 billion; non-interest income surged 39% to AED 6.3 billion, now 32% of total income.

• Net profit for 2024 was AED 9.42 billion, up from AED 8.21 billion in 2023.

• Net loans and advances increased 16% year-on-year to AED 351 billion; customer deposits also up 16% to AED 421 billion.

• Total assets increased to AED 652.8 billion as of December 31, 2024.

• Cost-to-income ratio improved to 31%, down 130 bps year-on-year.

Outlook and guidance

• Five-year plan targets doubling net profit to AED 20 billion, 20% annual profit growth, and ROE above 15%.

• Cost of risk expected to remain below 60 bps; CET1 ratio to stay above 12%.

• Dividend payouts to progressively increase, targeting AED 25 billion over five years.

• Management continues to monitor the impact of new IFRS standards and UAE corporate tax, with no material effect expected from Pillar Two tax rules.

• Loan growth expected to continue at low-to-mid double digits, with stable NIMs.