Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today reported its financial results for the year ended 31 December 2014, subject to approval by the UAE Central Bank.

Financial highlights (2014 vs. 2013)

[*]     Record levels of net profit and operating income, sustainable profitability

Net profit up 16% to AED 4.201 bn
Net profit attributable to equity shareholders up 20% to AED 4.050 bn
Operating income up 3% to AED 7.529 bn
Net fees and commission income up 25% to AED 1.243 bn

Resilient balance sheet and disciplined growth

Net loans and advances increased 7% to AED 141 bn as at 31 December 2014
Deposits from customer increased 9% to AED 126 bn as at 31 December 2014
Low cost CASA deposits contributed 45% of total deposits compared to 39% as at 31 December 2013

Strong liquidity and capital position at industry leading levels

Capital adequacy ratio of 21.03% and Tier 1 ratio of 17.01%
Net lender of AED 15 bn in the interbank markets as at 31 December 2014, reflecting our strong liquidity

Significant improvement in cost of funds and managed cost base

Cost of funds improved to 0.89% from 1.18% in 2013
Cost to income ratio at 34%, remains within our target range

Continued improvement in asset quality

Non-performing loan ratio improved to 3.1% from 4.1% as at 31 December 2013
Non-performing loans declined to AED 4.6 bn from AED 5.7 bn as at 31 December 2013
Provision coverage ratio improved to 137.1% from 109.7% as at 31 December 2013
Collective impairment allowance balance was 2.14% of credit risk weighted assets as at 31 December 2014

Tangible returns to shareholders

Recommended cash dividend of 40 fils per share
Basic EPS improved by 25.4% to AED 0.74 compared to AED 0.59 in 2013

Remained committed to the UAE Economy

90% of loans (gross) in the UAE

The Bank reported record results in 2014, crossing the AED 200 bn mark in total assets and AED 4 bn mark in net profit for the first time, delivering a net profit of AED 4.201 bn, up 16% from 2013. 

“These results reflect sustained solid performances across all operations” said ADCB Chairman Eissa Mohamed Al Suwaidi.

“ADCB remains a leading bank in the UAE and the region, differentiated by its focused approach, strategic and operational discipline, and financial strength.  As a result of the Bank’s record performance in 2014, the Board of Directors has recommended a cash dividend of 40 fils per share, translating to a pay out of AED 2.080 bn (excluding treasury shares) equivalent to 50% of net profit, subject to approval of the UAE Central Bank.

Our strategy has delivered good performances over recent years and in 2014, the Bank reaffirmed the pillars comprised in the Bank’s strategy and agreed on the prioritisation of the Bank’s objectives.”

ADCB’s priorities:

Create the most valuable bank in UAE in terms of total shareholder return

Build sustainable and quality profits through repeatable core business and operating model

Retain our conservative risk stance

The Chairman also noted that ADCB remains a UAE centric bank and is committed to investing in developing the UAE’s long-term social and economic infrastructure, in line with the UAE Vision 2021 and Abu Dhabi Economic Vision 2030.

“In 2014, the Bank continued to focus on a number of important areas, including:

Our commitment to attracting, training, and retaining high-calibre UAE national talent across all levels of the Bank.  At the end of the year 40.5% of the Bank’s staff were UAE nationals.  The Board is particularly proud of the Bank’s ‘Tamooha’ initiative which won the HR Excellence Award for Emiratisation in 2014. This initiative, the first of its kind in the Middle East Banking sector, provides work for 120 Emirati ladies in the Al Ain region, and is part of ADCB’s ambition to promote Emiratisation at various administrative levels, in line with the directives of the UAE’s leadership. 

[*]     ADCB won the Hawkamah Bank Corporate Governance Award for the second time in three years.  This prestigious regional award highlights our commitment to governance across all levels of the Bank, from the Board and executive management to our entire staff.

[*]     The Bank again published a Sustainability report during 2014 and ranked 4th in Standard & Poor’s/Hawkamah Pan-Arab ESG Index.  Our practice continues to support locally sourced products to promote local economic development. In 2014, the CIPS Middle East Awards recognised ADCB as a finalist for the Best Contribution to Corporate Responsibility.  

The Bank remains committed to contributing to the development of the UAE banking sector and the country, and on behalf of the Board, I thank His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the UAE President and Ruler of Abu Dhabi, may Almighty Allah safeguard him, His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, and the UAE Central Bank for their continued support for ADCB and the future development of the UAE economy. I would also like to extend my gratitude and appreciation to our shareholders, valued customers and the ADCB executive management team and employees.”

 

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