ABU DHABI COMMERCIAL BANK PJSC
Q3/9M 2022
EARNINGS PRESS RELEASE
AND MANAGEMENT
DISCUSSION & ANALYSIS
24 October 2022
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Investor Relations ADCBADCB reports record quarterly net profit of
AED 1.591 bn, up 25% YoY, and 9M’22 net profit
of AED 4.650 bn, up 22%
Abu Dhabi, 24 October 2022 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the third quarter of 2022 (“Q3’22”).
Solid earnings growth as UAE economy Key highlights Q3’22
remains resilient against challenging
global backdrop
1.591
bn
Net profit (AED)
Key highlights – Q3’22 vs. Q3’21
> Net profit of AED 1.591 bn increased 25% 13.1
%
> Net interest income of AED 2.558 bn increased 17%
Return on average
> Non-interest income of AED 952 mn increased 31%
tangible equity
> Operating income of AED 3.510 bn increased 21%
> Operating profit before impairment charge of
12.60
AED 2.269 bn increased 20% %
CET1
Key highlights – 9M’22 vs. 9M’21
> Net profit of AED 4.650 bn increased 22% 124.5
%
> Net interest income of AED 7.276 bn increased 10%
Liquidity
> Non-interest income of AED 2.665 bn increased 13% coverage ratio
> Operating income of AED 9.941 bn increased 11%
> Operating profit before impairment charge of 73
bps
AED 6.355 bn increased 9%
Cost of risk
> Impairment charge of AED 1.586 bn decreased 20%
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 2Rise in loans and deposits has reinforced balance sheet strength
> Total assets of AED 486 bn increased 10% from Dec’21
> Net loans and advances to customers were AED 251 bn at September-end, up 3%
(or AED 7 bn) over Dec’21
– New corporate credit extended totalled AED 49 bn in the first nine months of the year
> Average interest earning assets of AED 399 bn were up 11% (or AED 38 bn)
over Sep’21
> Total customer deposits of AED 302 bn increased 14% (or AED 37 bn) from Dec’21.
CASA (Current and savings account) deposits were AED 160 bn at September-end, up
5% (or AED 7 bn) from year-end, and comprised 53% of total customer deposits
> Capital adequacy and CET1 ratios were 15.44% and 12.60% respectively
> Liquidity coverage ratio (LCR) of 124.5%
> Cost of risk for 9M’22 was 60 bps and 73 bps for Q3’22. NPL ratio was at 5.46%
(6.48% including POCI), while provision coverage ratio was 87.0% (140% including
collateral held)
Note: All numbers are as at 30 September 2022 unless otherwise stated
(Continued on next page)
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 3ALA’A ERAIQAT Group Chief Executive Officer
I am pleased to report that ADCB delivered a record net profit of AED 4.650 billion
in the first nine months of 2022, an increase of 22% over the prior year, which equates
to a return on average tangible equity of 13.0%.
The Bank has continued on a strong growth trajectory, with disciplined implementation
of our strategy helping us to navigate an increasingly challenging global economic
environment, marked by inflationary pressures and rising interest rates.
A number of important themes are coming through in our financial performance. These
include further strengthening and diversification of revenue streams, with double-digit
growth in both net interest income and non-interest income achieved in the nine-month
period. The Bank has recorded loan growth of 3% year to date, as lending increased to
diverse economic sectors. Meanwhile, ADCB’s strong franchise has continued to attract
significant customer deposits, which exceeded the AED 300 billion mark for the first time
at the end of September.
Across the Group, we are driving through an accelerated programme of digitisation to
ensure our customers receive the best service. This is translating into growth in our
customer base and significantly enhanced engagement. Our onboarding app continues
to set records with more than 66,000 new accounts opened digitally in the third quarter,
while the ADCB Mobile Banking app has now crossed the milestone of one million
subscribers. Al Hilal Bank’s super app has attracted over 157,000 registered users since
its launch in February, while investment in digital is also powering growth of ADCB Egypt,
which has recorded a 46% increase in nine-month net profit.
In addition to technology, our commitment to investing in our people continues to drive our
growth and the sustainability of our business. I am proud to say that our ongoing efforts
in social responsibility and talent development were recently recognised by Forbes - World’s
Best Employers Survey 2022. ADCB was amongst the 9 select companies that featured
from the Middle East, and the only UAE bank included in the global list.
This, together with our robust operating and financial performance, reaffirms ADCB’s
position as a highly resilient organisation that is well capable of navigating challenges and
achieving sustainable growth aligned with the UAE’s strategic ambitions.
1 million+
Subscription milestone reached for
ADCB Mobile Banking App
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 4DEEPAK KHULLAR Group Chief Financial Officer
ADCB produced a solid financial performance in the third quarter of 2022,
marked by broad-based growth in net profit of 25% year on year, as well as continued
strengthening of the balance sheet.
+25%
YoY increase in Q3’22 net profit
Rising interest rates coupled with the Bank’s increased lending activity underpinned a
17% year on year increase in net interest income in the third quarter. Meanwhile, ADCB
continued to focus on diversifying its revenue streams and generated 31% growth in
non-interest income in Q3 compared to the same period last year.
Our liquidity position strengthened further in Q3, with the Bank’s loan to deposit ratio
improving to 83% from 92% at year-end, while our liquidity coverage ratio remained
robust at 124.5%.
One of our key achievements this year has been the integration of a refreshed ESG
framework into the Bank’s corporate strategy. In September, ADCB took a major step by
issuing its first ever green bond, tapping strong investor demand to raise USD 500 million
to support the financing of low-carbon businesses and projects. As a result of ADCB’s
robust ESG approach, the Bank’s inaugural green bond was selected to feature in the
Bloomberg MSCI Green Bond Index.
In recognition of the significant progress ADCB has made on ESG over the last 18
months, leading ESG ratings agency Sustainalytics upgraded our ESG risk score, making
ADCB the highest-ranked diversified bank in the GCC. Moreover, Sustainalytics now ranks
ADCB among the top-10 banks globally for our approach to managing risks related to
data privacy and security.
Robust financial performance, combined with an unwavering commitment to operational
excellence and implementation of best practice in ESG are ensuring that ADCB is one of
the region’s most resilient financial institutions.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 5Q3/9M 2022 Management discussion & analysis
Q3/9M 2022 financial highlights
Income statement highlights (AED mn) 9M’22 9M’21 ΔYoY% Q3’22 Q2’22 Q3’21 ΔQoQ% ΔYoY%
Total net interest and Islamic financing income 7,276 6,614 10 2,558 2,571 2,179 (1) 17
Non-interest income 2,665 2,369 13 952 924 726 3 31
Operating income 9,941 8,982 11 3,510 3,495 2,905 0 21
Operating expenses (3,586) (3,129) 15 (1,241) (1,227) (1,013) 1 23
Operating profit before impairment allowances 6,355 5,853 9 2,269 2,268 1,892 0 20
Impairment allowances (1,586) (1,978) (20) (636) (655) (596) (3) 7
Net profit for the period(1) 4,650 3,800 22 1,591 1,575 1,276 1 25
Balance sheet highlights (AED mn) Sep’22 Sep’21 ΔYoY% Sep’22 Jun’22 Dec’21 ΔQoQ% ΔYTD%
Total assets 486,365 432,061 13 486,365 476,093 440,278 2 10
Net loans and advances 251,202 241,912 4 251,202 242,913 244,282 3 3
Deposits from customers 302,262 255,753 18 302,262 292,262 265,052 3 14
YoY QoQ YoY
Key metrics (%) 9M’22 9M’21 Δ bps Q3’22 Q2’22 Q3’21 Δ bps Δ bps
CAR (Capital adequacy ratio – Basel III) 15.44 16.25 (81) 15.44 15.22 16.25 22 (81)
CET1 (Common equity tier 1) ratio 12.60 13.23 (63) 12.60 12.37 13.23 23 (63)
Liquidity coverage ratio (LCR) 124.5 131.7 (720) 124.5 135.3 131.7 (1,080) (720)
Loan to deposit ratio 83.1 94.6 (1,150) 83.1 83.1 94.6 0 (1,150)
CASA/total customer deposits 53 57 (400) 53 54 57 (100) (400)
Non-performing loan (NPL) ratio 5.46 5.64 (18) 5.46 5.59 5.64 (13) (18)
Provision coverage ratio(2) 87.0 88.4 (140) 87.0 89.8 88.4 (280) (140)
NPL ratio including POCI(3) 6.48 7.00 (52) 6.48 6.74 7.00 (26) (52)
Cost of risk(4) 0.60 0.79 (19) 0.73 0.78 0.74 (5) (1)
Cost to income ratio 36.1 34.8 130 35.4 35.1 34.9 30 50
Net interest margin (NIM) 2.44 2.45 (1) 2.46 2.57 2.34 (11) 12
Risk adjusted NIM 1.88 1.69 19 1.79 1.86 1.63 (7) 16
Return on average tangible equity (ROATE) 13.0 11.0 200 13.1 14.2 10.7 (110) 240
Note: Figures may not add up due to rounding differences
(1) After share in profit of associates, overseas income tax charge, and profit/loss from discontinued operations
(2) Provisions on loans and advances, including fair value adjustments
(3) POCI: Purchase or originated credit-impaired financial assets
(4) COR: Net impairment charge on loans and investments divided by net average loans & advancements and investments
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 6Key highlights
Record quarterly net profit driven by broad-based YoY growth in net
interest income, fees and trading income amid a resilient UAE economy
> Net interest income of AED 2.558 billion for Q3’22 increased 17% year on year and
was 1% lower sequentially. Net interest margin (NIM) of 2.46% in Q3’22 improved
12 basis points year on year supported by rising benchmark rates, higher interest in
suspense reversals and fair value unwinds. 9M’22 net interest income of AED 7.276 billion
was 10% higher over the prior year, while NIM was stable at 2.44%, amid a change in
asset mix towards a lower-risk credit portfolio and liquid assets. This has contributed to
a lower cost of risk and an improvement in risk-adjusted NIM to 1.88% in 9M’22, from
1.69% a year earlier.
> The Bank’s financial resilience continued to be enhanced by growth in diversified
income streams, with non-interest income of AED 952 million in Q3’22, up 31% year
on year and 3% sequentially. Non-interest income accounted for 27% of Q3’22 total
operating income, up from 25% in Q3’21.
> Net fee and commission income of AED 499 million in Q3’22 increased 14% year
on year, with card-related fees (gross) rising 17% from the previous year and loan
processing fees increasing 25% over the prior year. Net trading income of AED 281 million
in Q3’22 increased 89% year on year on account of higher FX, derivatives and trading
gains. Non-interest income for 9M’22 increased 13% to AED 2.665 billion, with card
related fees (gross) up 23% year on year.
> Cost to income ratio was 35.4% in Q3’22, compared to 35.1% in the previous quarter
and 34.9% a year earlier. In the context of growing inflationary pressures, operating
expenses in Q3’22 were up 1% sequentially and 23% year on year to AED 1.241 billion
mainly on account of higher compensation costs and broad-based investment in the
growth of the business, including in digital technology and regulatory compliance.
9M’22 cost to income ratio was 36.1% compared to 34.8% a year earlier.
> The Bank reported a record quarterly net profit of AED 1.591 billion in Q3’22, an
increase of 25% year on year and 1% sequentially, while 9M’22 net profit also reached
a record AED 4.650 billion, representing a 22% increase year on year. Return on
average tangible equity was 13.1% for the third quarter and 13.0% for the first nine
months of 2022.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 7Resilient balance sheet underscored by steady increase in lending
and enhanced liquidity position
> The Group continues to benefit from a strong balance sheet, with total assets of
AED 486 billion as at September-end, up 10% over the year-end.
> The Bank’s net loans and advances to customers increased 3% sequentially to
AED 251 billion, as lending increased to diverse economic sectors such as energy,
trading and manufacturing.
> Investment securities of AED 108 billion at September-end increased 12% year to
date mainly on account of an increase in government bonds. The Bank was also a net
lender of AED 20.4 billion in the interbank markets as at September-end.
> Total customer deposits of AED 302 billion were 14% higher than December-end.
CASA deposits grew 5% to AED 160 billion at the end of Q3’22, while time deposits
increased 27% to AED 142 billion. CASA deposits were 53% of total customer
deposits at September-end.
> The average loan balance was AED 243 billion in 9M’22, and the average deposit
balance was AED 275 billion.
> Total shareholders’ equity stood at AED 59 billion as at 30 September 2022.
> The Bank remains well-capitalised with capital adequacy (Basel III) and CET1 ratios
of 15.44% and 12.60% respectively as at 30 September 2022, versus 15.97% and
12.94% at December-end.
> ADCB maintained a robust liquidity position during 9M’22, resulting in a liquidity
coverage ratio of 124.5%, a liquidity ratio of 33.0% and a loan to deposit ratio
of 83.1%.
Significant improvement in 9M’22 cost of risk, underpinned by lower
impairment charges
> Cost of risk in 9M’22 improved to 60 bps from 79 bps the previous year, while
quarterly cost of risk remained steady year on year at 73 bps, in line with medium-term
guidance of 80 bps.
> Impairment charges were AED 636 million in Q3’22, an improvement of 3%
sequentially, and were AED 1.586 bn in 9M’22, which was 20% lower year on year.
The NPL ratio improved to 5.46% from 5.59% at June-end, and including net POCI
(purchase or originated credit impaired) assets, the NPL ratio was 6.48%.
> The provision coverage ratio was 87% compared to 89.8% in the previous quarter,
while including collateral held, it was 140% as at 30 September 2022 compared to
147% at June-end.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 8New quarterly record of 66,000+ accounts opened digitally through
onboarding app, while Mobile Banking app crossed one million
subscriber milestone
> Subscriptions to the Bank’s Mobile Banking app increased 8% sequentially and 29%
year on year to more than 1 million customers at September-end.
> ADCB continued to see a high volume of new account openings via its onboarding app,
with a record 66,000+ accounts opened digitally in Q3’22, representing 75% of all
new-to-bank retail customers during the period.
> In Q3’22, 96% of all retail transactions were conducted electronically, and digital fund
transfers were up 65% year on year. Over 93% of IPO subscriptions were received
through digital channels in Q3’22.
> The Bank maintained its focus on introducing digital enhancements for customers, with
12 digital releases across its Consumer and Wholesale Banking businesses in Q3’22,
taking the total to 126 since the start of its digital transformation programme. 85% of
retail customers are now registered to digital channels.
> The Wholesale Banking Group introduced credit cards to the ProCash Mobile app, with
users able to make payments, settle outstanding amounts and get monthly statements.
Further enhancements were also made to payments to improve user experience and
provide greater detail on real time tracking transactions.
> Transactions on the ProCash and ProTrade platforms accounted for 96% of all cash
management transactions and 70% of trade finance transactions, respectively.
Inaugural green bond supports financing of low-carbon initiatives for
a net-zero economy
> In recognition of the significant progress the Bank has made on ESG over the last 18
months, leading ESG ratings agency Sustainalytics upgraded ADCB’s ESG risk score,
making ADCB the highest-ranked diversified bank in the GCC and among the top 10
banks globally for its approach to managing risks related to data privacy and security.
> In the third quarter, ADCB adopted a new Green Bond Framework and the Bank
issued its first ever green bond to support the financing of low-carbon businesses
and projects. The USD 500 million, 5-year bond was 3.8 times oversubscribed after
attracting a range of local, regional, and international investors. As a result of ADCB’s
robust ESG approach, the bond was subsequently selected to feature in the Bloomberg
MSCI Green Bond Index.
> ADCB is actively introducing new products to help clients transition to a low carbon
economy. In Q3’22, the Bank provided financing to a global commodities trader for the
purchase of carbon credits, adding to its growing sustainable finance offering, which
already includes green bonds, renewable energy project finance and sustainability-
linked loans.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 9ADCB Egypt recorded solid performance driven by strong growth
in loans and deposits
> ADCB Egypt continued to deliver solid growth across the Consumer and Wholesale
Banking businesses, driven by its digital transformation programme. Subscribers to
ADCB Egypt’s digital banking platforms increased by 111% year on year in Q3’22, with
active digital customers up 94%.
– Net profit(1) in 9M’22 increased 46% year on year to EGP 499 million
– Net loans increased 35% year to date to EGP 29 billion as at 30 September 2022
– Total deposits increased 60% year to date to EGP 65 billion as at 30 September 2022
Al Hilal Bank continues to attract a broad base of customers from
across the UAE through its disruptive super app
> Al Hilal Bank is making strong progress towards becoming a fully digital Islamic bank.
To date, more than 157,000 new users have registered to the Al Hilal super app
since its launch in February. The app provides a wide range of financial and lifestyle
products and services on a single platform, including a virtual marketplace and financial
education features for children.
> Digital first approach has enabled Al Hilal Bank to broaden its demographic and
geographic reach, with residents of Dubai and the Northern Emirates accounting for
28% and 24% of registered users, respectively.
> Al Hilal Bank’s broad product offering, along with its engaging, family-centric and
gamified financial education tools, have seen strong levels of daily engagement, with
6,700 transactions conducted on a daily basis.
> The new platform builds on a track record of increasing digital engagement, with active
users of Al Hilal’s digital platforms up 26% sequentially.
> The Bank’s strategy is aligned with the UAE’s Digital Government Strategy 2025,
enabling it to build a data-driven fully digital bank.
(1) Based on IFRS
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 10ADCB – 9M 2022 Awards and recognition
ABF WHOLESALE BANKING MENA BANKING EXCELLENCE INTERNATIONAL BUSINESS
AWARDS 2022 AWARDS 2022 MAGAZINE 2022
UAE Domestic Trade Finance Excellence in Employee Best Trade Bank in MENA
Bank of the Year Engagement
GLOBAL FINANCE ARC AWARDS FORBES
2022 2022
ADCB ranked top GCC
Best Trade Finance Provider Gold Award Best International bank in Forbes 2022 survey
in the UAE Annual Report “World’s Best Employers”
ADCB Egypt – 9M 2022 Awards and recognition
GLOBAL FINANCE WORLD INTERNATIONAL BUSINESS
2022 BUSINESS OUTLOOK MAGAZINE
Best User Experience Best New Bank Best Digital Banking Services
(UX) Design Egypt 2022 Provider Egypt 2022
Fastest Growing Retail Bank Best Mobile Banking
Egypt 2022 Egypt 2022
INTERNATIONAL FINANCE
MAGAZINE
Fastest Growing Corporate Best Online Banking
Bank Egypt 2022 Egypt 2022
Best Financial Inclusion
Package Towards People
Fastest Growing Bank Best Financial Inclusion
With Disabilities Egypt 2022
Egypt 2022 Initiative Egypt 2022
Most Innovative New Digital
Bank Egypt 2022
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 11Further information on ADCB can be found at
adcb.com/ir or by contacting:
Investor Relations Abu Dhabi Commercial Bank
Denise Caouki Sheikh Zayed Bin Sultan Street
Email: ir@adcb.com PO Box: 939, Abu Dhabi
adcb.com
Corporate Communications
Majdi Abd El Muhdi
Email: majdi.a@adcb.com
This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for
information purposes only. The information, statements and opinions contained in this
document do not constitute a public offer under any applicable legislation or an offer to
sell or solicitation of an offer to buy any securities or financial instruments or any advice or
recommendation with respect to such securities or other financial instruments. This document
is not intended for distribution in any jurisdiction in which such distribution would be contrary to
local law or reputation.
The material contained in this press release is intended to be general background information
on ADCB and its activities and does not purport to be complete. It may include information
derived from publicly available sources that have not been independently verified. No
representation or warranty is made as to the accuracy, completeness or reliability of the
information. It is not intended that this document be relied upon as advice to investors or
potential investors, who should consider seeking independent professional advice depending on
their specific investment objectives, financial situation or particular needs.
This document may contain certain forward-looking statements with respect to certain of
ADCB’s plans and its current goals and expectations relating to future financial conditions,
performance and results. These statements relate to ADCB’s current view with respect
to future events and are subject to change, certain risks, uncertainties and assumptions
which are, in many instances, beyond ADCB’s control and have been made based upon
management’s expectations and beliefs concerning future developments and their potential
effect upon ADCB.
By their nature, these forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances which are beyond ADCB’s control, including, among
others, the UAE domestic and global economic and business conditions, market related
risks such as fluctuations in interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition, the timing impact and other
uncertainties of future acquisition or combinations within relevant industries.
As a result, ADCB’s actual future condition, performance and results may differ materially from
the plans, goals and expectations set out in ADCB’s forward-looking statements and persons
reading this document should not place reliance on forward-looking statements. Such forward-
looking statements are made only as at the date on which such statements are made and
ADCB does not undertake to update forward-looking statements contained in this document or
any other forward-looking statement it may make.
Q3/9M 2022 Earnings Press Release and Management Discussion & Analysis 12

Sentiment: neutral