Abu Dhabi Commercial Bank – Egypt Achieves Record Growth in Third Quarter 2022
Strong performance indicators and net profit jumps 87%
Abu Dhabi Commercial Bank – Egypt continues to achieve significant and balanced growth in all activities and business sectors, with a huge increase in financial performance indicators and keeping the efficiency rates and risk ratios in relevance with the achieved growth, business sustainability and customer satisfaction at the same time, as the Bank announced the financial results for the third quarter of 2022, as its net profit before provisions and taxes increased by 65% by the end of September 2022 compared to the same period in 2021 to reach 1.528 billion pounds, and net profits reached 705 million pounds, with an increase of 87% over the same period of the previous year. With total assets increased by 52% to reach EGP 73.3 billion by the end of September 2022 compared to the end of 2021 .
The financial indicators showed an overall outstanding performance, as the rate of return on equity reached 15.2%. The net income from revenue increased by 47.5% and net income from fees and commissions increased by 67.2% at the end of the third quarter compared to the end of September 2021. The bank was also keen on achieving efficiency and controlling expenses, which led to a decrease in cost to income by 4%, despite the interest in investing in strengthening the technological infrastructure and keeping pace with the growth plan.
Mr. Ihab ElSewerky, Managing Director and CEO of Abu Dhabi Commercial Bank – Egypt commented: “We are moving forward with steady steps in implementing our five-year strategy with the aim of being the bank of choice for our customers. Indeed, the bank was able to achieve strong and sustainable growth, which was reflected in the financial performance indicators throughout the year. Which includes continuing to enhance and diversify revenues, and achieve remarkable growth in net income. The bank also recorded a growth in loans and at the same time, maintained its strong position and its ability to develop customer deposits, as the net loans and credit facilities for customers increased to 28.7 billion pounds with a growth rate of 35.3%, and the total customer deposits recorded an increase of 60 % to reach 65.6 billion at the end of September 2022 compared to the end of 2021.
The capital adequacy ratio reached 17.3% within the prescribed regulatory limit, allowing the bank to continue with its ambitious expansion plan. ElSewerky added: “The bank gives priority to digital transformation, which enhances our commitment to providing the best banking services and improving efficiency levels. In this context, we have digitalized many transactions to enhance our digital services in record time, which received great commendation and interaction from our customers, as the increase in the number of users has reached 111% at the end of September 2022 compared to the same period last year.
The Wholesale Banking Group in Abu Dhabi Commercial Bank – Egypt is working to attract new customers in multiple sectors, in addition to supporting existing customers in their daily transactions and developing their business, in line with the bank’s expansion strategy, the bank also participated in financing a number of significant national projects, including the High Speed Train in addition to several securitization deals which led the securitization portfolio reaches 3 billion pounds , and it is noteworthy that the large corporate loan portfolio achieved a growth rate of 50% at the end of September 2022 compared to the end of December 2021. The bank also achieved a significant increase in the loan portfolio for small and medium sized enterprises amounted to 30% at the end of September 2022 compared to the end of December 2021.
Abu Dhabi Commercial Bank – Egypt is also working on expanding in the sector of retail banking by achieving leadership in the field of digital banking services and products, which the Emirati group is distinguished by at the regional level, and the bank has achieved an increase in the cards portfolio by 86% since the beginning of the year. The retail banking portfolio is about 8.2 billion pounds at the end of September 2022, compared to 7.4 billion pounds at the end of December 2021.
The bank was keen to maintain the quality and diversity of the loan portfolio, as the bank succeeded in reducing the percentage of non-performing loans to 3.6%, and the bank was keen to maintain provisions, which rose by 34% at the end of third quarter of the year compared to the end of 2021.
It is worth noting that ADCB Egypt won a number of prestigious awards during 2022, the most recent of which was the Middle East and Africa Retail Banking Innovation Awards, which are “Excellence in Digital Innovation”, “Best Graduate Employment Program” and “Best Financial Inclusion Initiative” from The Digital Banker Foundation, also Global Finance awarded ADCB “Best User Experience” award 2022. This came as a continuation of the bank’s success path since launching the brand in the Egyptian market 2 years ago.