Abu Dhabi Commercial Bank – Egypt H1 2021 net profit rises by 83%
El Sewerky: Successful bank’s strategy, continuing our expansion plans, emphasizing the brand, and finalizing measures to raise our capital
Abu Dhabi Commercial Bank – Egypt (ADCB-Egypt) has delivered robust results during the first half of 2021, with net profit increasing by a staggering 83% to reach EGP 358 Million compared to the first half of 2020. This positive performance reflects the bank’s successful business management and its efficiently executed growth strategies at this critical stage despite the effects of the pandemic. It also proves the Egyptian economy’s resilience, as the country was one of the few emerging markets that maintained growth at a quick pace despite the global pandemic.
Furthermore, ADCB-Egypt recorded a 22% growth in total assets reaching EGP 41.9 billion as of the end of June 2021, up from 34.3 billion recorded at the end of December 2020.
Total loans and credit facilities also had a notable growth of 20% defined as EGP 19.8 billion in the first half of 2021, a significant development from the EGP 16.6 billion recorded in December 2020. Customer deposits also rose by 20% quantified as EGP 34.9 billion as of June 2021, relative to the EGP 29.1 Billion recorded at the end of December 2020.
Mr. Ihab El Sewerky, CEO and Managing Director of ADCB-Egypt, commented: “We are immensely proud of our bank’s momentum during the first half of the year, registering a solid increase of more than 80% in comparison to figures recorded in the same period last year. This positive performance is a testament to Egypt’s economic resilience, maintaining its status as an economy with high potential for investment and growth. It also highlights the bank’s strong strategy and successful expansion policy in emphasizing the brand in the Egyptian market.
Since we started our operations in Egypt in September 2020 and our bank’s strategy is built on catering to our clients’ demands and aspirations while achieving a balanced growth in terms of activities and business sectors, keeping efficiency and mitigating risks that deal with this growth to ensure sustainable business development.”
El Sewerky added: “The bank has obtained the essential approvals to raise its capital and opened the subscription for current stockholders. The capital increase was fully subscribed and the bank is currently completing measures to be at the forefront of banks that comply with the New Central Bank Law.”
Stemming from the bank’s belief in the importance of supporting corporates and the small and medium-sized enterprises (SMEs), one of Egypt’s key economic drivers and strongly supported by the Central Bank of Egypt, ADCB-Egypt delivered robust results in its corporate loans as a result of increased lending activity. SME loans surged to 25% and corporate loans rose to 20% at the end of June 2021, in comparison to numbers recorded in December 2020.
Overall, the bank recorded strong performance as indicated by its return on total assets ratio which rose by 54% compared to the same period last year to reach 1.9%. The bank has also maintained its return on equity at 16.3%, despite raising its issued and paid-in capital from EGP 1.474 billion to EGP 5 billion, marking an increase of EGP 3.526 billion. Meanwhile, cost-to-income ratio declined by 7% despite the bank’s efforts to increase efficiency and bear the costs in order to keep up with the pace of growth schemes and market changes.
Provisions increased by 33% as of the end of the second quarter of 2021 compared to the same period last year, while the capital adequacy ratio reached 24.2%, exceeding the regulatory minimum and allowing the expansion plan to continue.
As for the bank’s top-line services, ADCB-Egypt gives great priority to digital banking services to ensure customer satisfaction.
The bank has launched a number of distinguished services, most notable is its mobile banking service, as well as its internet banking service for individuals and companies, which includes external transfers along with an increase in cash deposit machines, phone banking Service (IVR), and the chatbot through the bank’s website. Such services rely on the most up-to-date technologies and the most innovative and secure methods to ensure all banking transactions are done in the least amount of time and with the greatest degree of ease and safety.