Abu Dhabi Commercial Bank (ADCB) Q4 2024 earnings summary

Executive summary

• Achieved AED 10.6 billion profit before tax in 2024, up 26% year-over-year, with net profit after tax at AED 9.42 billion and ROATE at 15.2%–15.3%.

• Surpassed five-year strategic goals a year ahead of schedule and launched a new five-year strategy targeting AED 20 billion net profit and ROE above 15%.

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

• Consolidated financial statements for 2024 were audited with an unqualified opinion, focusing on ECL allowances and IT controls.

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

Financial highlights

• Net profit after tax for 2024 was AED 9.42 billion, up from AED 8.21 billion in 2023; profit before tax reached AED 10.6 billion.

• Operating income grew 15% to AED 19.5 billion; non-interest income rose 39% to AED 6.25 billion, now 32% of total income.

• Net loans and deposits both increased 16% year-over-year, reaching AED 351 billion and AED 421 billion, respectively.

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

• Cost-to-income ratio improved to 31% for 2024, down 130 bps year-over-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.

• Loan growth expected to continue at low-to-mid double digits, with stable NIMs and cost-to-income ratio below 30% 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.