Abu Dhabi, 06 May 2019 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today reported its financial results for the first quarter of 2019 (“Q1’19”). The results are for the standalone ADCB entity for the first quarter of 2019, prior to the merger with Union National Bank and the subsequent acquisition of Al Hilal Bank.

Key highlights (31 March 2019)

  • Strong operating performance underpinned by robust growth in gross interest and Islamic financing income and non-interest income

 (Q1’19 vs. Q1’18)


  • Gross interest and Islamic financing income of AED 3.116 billion was up 17%
  • Net interest and Islamic financing income of AED 1.707 billion was 7% lower, primarily attributable to a change in the composition of the liability base over Q1’18 and competitive pricing, partially offset by rising benchmark rates and higher volumes
  • Non-interest income of AED 566 million was up 8%
  • Net fees and commission income of AED 379 million was up 8%
  • Operating expenses of AED 793 million were up 3%, mainly attributable to ongoing investments in digital transformation initiatives and integration related expenses
  • Impairment allowances of AED 330 million were 13% lower
  • Net profit of AED 1.152 billion was 5% lower, impacted by higher cost of funds, partially offset by higher non-interest income and lower impairment charges
  • Customer deposit growth continued to outpace loan growth; significant growth in CASA* deposits at the end of the quarter
    • Total assets grew 4% to AED 292 billion and net loans to customers increased 2% to AED 169 billion over 31 December 2018
    • Deposits from customers increased 4% to AED 184 billion over 31 December 2018
    • Low cost CASA (current and savings account) deposits increased by AED 10 billion to AED 80 billion over 31 December 2018 and comprised 3% of total customer deposits compared to 39.4% as at 31 December 2018
    • Loan to deposit ratio improved to 91.7% from 94.2% as at 31 December 2018
  • Strong capital and liquidity position
    • Capital adequacy ratio (Basel III) of 15.76% and common equity tier 1 (CET1) ratio of 12.07% compared to minimum capital requirements of 13.50% and 10.00% (including buffers) respectively prescribed by the UAE Central Bank
    • Liquidity coverage ratio (LCR) of 193% compared to a minimum ratio of 100% prescribed by the UAE Central Bank (LCR as at 31 December 2018: 186% compared to a minimum ratio of 90% prescribed by the UAE Central Bank)
    • Liquidity ratio of 30.3% compared to 28.3% as at 31 December 2018
    • Net lender of AED 16 billion in the interbank markets
  • Current and Savings account
  • Asset quality metrics remain strong, committed to maintaining a disciplined risk profile
    • NPL ratio of 3.09% compared to 2.88% as at 31 December 2018
    • Provision coverage ratio of 118.9% compared to 130.2% as at 31 December 2018
    • Cost of risk of 0.64% compared to 0.57% as at 31 December 2018
    • Collective impairment allowances were 2.10% of credit risk weighted assets, above the minimum 1.5% stipulated by the UAE Central Bank

On 1 May 2019, ADCB combined with Union National Bank (UNB) and Al Hilal Bank to form a larger and stronger banking group called ADCB. Al Hilal Bank continues to operate as a separate Islamic banking entity within the group under its own brand, mainly providing Shari’ah-compliant retail banking products and services through digital platforms.

The Bank’s operations, processes and infrastructure will be integrated in phases over the next 18 to 24 months. The combination is expected to deliver annual cost synergies of approximately AED 615 million. ADCB will continue to keep the market fully apprised of progress with the integration.

Commenting on the Bank’s performance Ala’a Eraiqat, Group Chief Executive Officer and Board Member said:

“Following our strong results in 2018, we are pleased to announce a net profit of AED 1.152 billion in Q1’19. We have made good progress in a number of key areas in the first quarter of 2019. In particular, we have delivered a strong and sustainable return on equity, increased fee income and continued to grow our market share in deposits. In a rising interest rate environment, our low cost CASA deposits grew by AED 10 billion to AED 80 billion, reporting an increase of 15% over the year end.

The Bank maintains a robust risk governance structure. Our prudent approach to risk management has given us the flexibility to adjust to the challenges of the operating environment in an increasingly competitive market. We remain committed to preserving and protecting the long-term financial strength of the Bank and continue to place high priority on maintaining adequate sources of funding and liquidity.

Fast-paced changes in technology continue to impact customers’ expectations and behaviour, and the Bank’s strategy is evolving in parallel to maintain our position as a progressive player. We have sustained our investment in digital transformation, with key initiatives such as the recent launch of the “Hayyak” onboarding app for new customers, which offers instant account opening.

I am also pleased to announce that the combination of ADCB with UNB and Al Hilal Bank has taken effect, and we are already making rapid progress in integrating the three organisations. Looking ahead to the future of the Bank, our priorities are to maintain the highest standards of customer service throughout the integration, while delivering cost synergies and sustainable long-term growth.”

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