Abu Dhabi Commercial Bank Reports 26% Increase in Net Profits for Q1 2024

Abu Dhabi Commercial Bank announced its financial results for the first quarter of the year 2024, where net profits increased by 26% to reach 2.431 billion dirhams, before tax, while net profits reached 2.139 billion dirhams after deducting tax.
The bank, in a statement today, said that this strong growth in profits was mainly driven by strong growth in loans granted in the bank’s main business sectors, represented with the Corporate Banking and Investment Services Group and the Retail Banking Services Group.
The bank explained that interest income increased by 16% to reach 3.301 billion dirhams, while non-interest income increased by 21% to reach 1.285 billion dirhams, while income grew in from operating works 17% to reach 4.586 billion dirhams, and the cost – the ratio to income improved 60 basis points to reach 30.9%, and operating profits before the removal of provisions increased by 18% to 3.169 billion dirhams.
Total assets increased by 19% compared to the same period last year and 5% compared to the fourth quarter of 2023, reaching 594 billion dirhams, while the total average funds for interest increased by 17% compared to the same period last year and 6% compared to the fourth quarter of 2023, reaching 492 billion dirhams.
The portfolio of loans and advances increased by 21% compared to the same period last year and 5% compared to the fourth quarter of 2023, reaching 318 billion dirhams.
The total new credit facilities provided came to 41 billion dirhams by the end of the first quarter of 2024, excluding the repayment of certain loans.
Total customer deposits increased by 24% compared to the same period last year and 6% compared to the fourth quarter of 2023, reaching 384 billion dirhams, while customer deposits in current and savings accounts reached 180 billion dirhams by the end of the first quarter. of 2024, an increase of 7% compared to the fourth quarter of 2023, which represented 47% of total customer investments.
The capital adequacy ratio improved to 16.26% after being 16.22% at the end of the year 2023, and the ratio of common equity from the first tier reached 12.96% compared to 12.86% at the end of the year 2023, while was the liquidity. Coverage ratio (LCR) reached 139.8%, and the loan ratio reached 139.8% To deposits 82.9%.
The cost of risk improved, reaching 0.67% at the end of the first quarter of 2024, compared to the fourth quarter last year, when it was 1.02%.
The percentage of non-performing loans increased to 3.44% after being 3.73% at the end of the year, which is the lowest percentage since 2020. The coverage ratio of cash provisions reached 108.5% compared to 102.5% at the end of 2023, while the coverage ratio when pledges were added reached 167%.