ABU DHABI COMMERCIAL BANK PJSC
Q1 2023
EARNINGS PRESS RELEASE
AND MANAGEMENT
DISCUSSION & ANALYSIS
17 April 2023
Investor Relations
adcb.com/irInvestor Relations
ADCB reports record net profit of AED 1.878 bn in Q1’23,
up 27% YoY
Abu Dhabi, 17 April 2023 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the first quarter of 2023 (“Q1’23”).
Solid performance driven by core income Q1’23 key highlights
generation and strong fundamentals
1.878
bn
Q1’23 Key highlights (vs. Q1’22)
Net profit (AED)
> Net profit of AED 1.878 bn increased 27%
> Net interest income of AED 2.851 bn increased 33% 14.3
%
> Non-interest income of AED 1.061 bn increased 34%
Return on average
> Operating income of AED 3.912 bn increased 33% tangible equity
> Cost to income ratio of 31.5% improved by 660 bps
12.93
> Operating profit before impairment charge of AED 2.681 bn %
increased 47%
CET1 ratio
Total assets cross the AED 500 bn mark, 132.9
%
with continued loan and deposit growth
Liquidity
coverage ratio
> Total assets of AED 501 bn increased 13% from Mar’22 and 1%
from Dec’22
75
> Net loans of AED 264 bn were 7% higher from Mar’22 and up bps
2% from Dec’22. New credit extended totalled AED 20 bn in the
first quarter Cost of risk
> Total customer deposits of AED 311 bn were 19% higher from
Mar’22 and up 1% from Dec’22. CASA (Current and savings
account) deposits were up AED 5 billion during the quarter to
AED 158 bn, comprising 51% of total customer deposits at March-end
> Capital adequacy and CET1 ratios were 15.67% and 12.93%
respectively
> Liquidity coverage ratio (LCR) of 132.9%
> Cost of risk was 75 basis points for Q1’23. NPL ratio was at
5.42% (6.06% including POCI), while provision coverage ratio was
92.4% (143% including collateral held)
Q1 2023 Earnings Press Release and Management Discussion & Analysis 2Investor Relations
ALA’A ERAIQAT Group Chief Executive Officer
ADCB has maintained its growth momentum into 2023, delivering a 27% year-on-year increase
in net profit to AED 1.878 billion in Q1’23, which equates to a return on average tangible equity
of 14.3%.
We are pleased to achieve these record quarterly results, especially in light of the heightened
uncertainty in the global economy and international banking sector. ADCB’s performance is being
driven by a solid balance sheet, prudent risk management, and a resilient UAE economy that
benefits from strong long-term fundamentals.
The Bank has continued to deliver credit growth and our strong reputation in the market has
attracted further deposit inflows. Total assets crossed the AED 500 billion mark during the first
quarter for the first time, solidifying ADCB’s standing as a leading UAE financial institution.
Growth is being generated across all our business segments. It is powered by a
market-leading digital offering, with ADCB listed as the only financial institution included in the top five
brands in KPMG’s UAE Customer Experience Excellence Report. The Bank is taking further steps to drive
digital-enabled growth, delivering a number of new partnerships this year to provide our customers
with exclusive opportunities in the UAE and internationally.
In the first quarter, ADCB welcomed over 114,000 new retail customers, with 80% joining through our
digital channels. Our cards business, personal and auto loans and mortgages provided combined
asset growth of 11% year on year (1), reflecting positive consumer sentiment and ADCB’s ability to
remain closely attuned to the market. The Bank experienced its fastest pace of growth in credit
card issuance, with the recently launched ‘365 Cashback Card’ achieving record sales in its first
month.
The Corporate and Investment Banking Group also continues to expand and diversify its loan
portfolio. Furthermore, the business is building a strong track record in structuring complex
transactions, loan syndications and capital markets advisory. The Bank has been active on a
number of significant equity and debt capital raising transactions for our clients in the first quarter.
Our first quarter performance demonstrates that ADCB continues to be a highly trusted partner
in the UAE economy, supported by our sharp focus on customer service excellence. The Bank
benefits from a strong financial position and remains on a positive growth trajectory.
114,000+
New retail customers in Q1’23
(1) ADCB Group’s UAE operations including Al Hilal Bank
Q1 2023 Earnings Press Release and Management Discussion & Analysis 3Investor Relations
DEEPAK KHULLAR Group Chief Financial Officer
ADCB has continued to display strong business and financial fundamentals. In the first quarter,
the Bank achieved steady loan and deposit growth, with efficiency metrics trending in line with
our medium-term guidance.
Net interest income of AED 2.851 billion was 33% higher than a year earlier, while non-interest
income was up 34% at AED 1.061 billion. Operating profit before impairment allowances was up
47% year on year at AED 2.681 billion.
Given the global economic slowdown, the Bank recognises the importance of maintaining balance
sheet strength to enhance long-term resilience. ADCB retains substantial capital buffers and benefits
from a strong liquidity position, with funding remaining well-diversified.
During the first quarter, our asset base continued to expand, with net loans increasing by 2%
sequentially and 7% higher year on year. Growth has been broad-based, with AED 20 billion in
new credit extended during the first quarter, offset by AED 15 billion in repayments.
Customer deposits were up 1% sequentially and 19% higher than a year earlier, with CASA deposits
increasing AED 5 billion during the quarter and accounting for 51% of the total. This is a notable
achievement in the context of rising benchmark rates over the last 12 months and a testament to
ADCB’s strong franchise.
The Bank has continued to take a disciplined approach to managing its cost base in light of the
global inflationary environment. In the first quarter, operating expenses reduced 5% sequentially,
with the cost to income ratio improving to 31.5% from 38.1% a year earlier.
While the Bank is successfully delivering growth, we are also ensuring that our business is
sustainable. Having embedded ESG into our corporate strategy, the Bank is stepping up green
financing initiatives to support clients in their decarbonisation journey. To reinforce this commitment,
in January ADCB signed the UAE Climate-Responsible Companies Pledge with the Ministry of
Climate Change and Environment in support of the UAE’s net zero ambitions.
With the UAE hosting the COP28 global climate conference in November, ADCB stands ready to
channel the expertise and dedication of our teams to support investment into a cleaner, increasingly
diversified economy.
AED 20 bn
New credit extended in Q1’23
Q1 2023 Earnings Press Release and Management Discussion & Analysis 4Investor Relations
Q1 2023 Management discussion & analysis
Q1 2023 financial highlights
Income statement highlights (AED mn) Q1’23 Q4’22 Q1’22 ∆QoQ% ∆YoY%
Total net interest and Islamic financing income 2,851 2,918 2,146 (2) 33
Non-interest income 1,061 1,486 789 (29) 34
Operating income 3,912 4,403 2,936 (11) 33
Operating expenses (1,231) (1,302) (1,118) (5) 10
Operating profit before impairment allowances 2,681 3,101 1,818 (14) 47
Impairment allowances (748) (1,193) (294) (37) 154
Net profit for the period(1) 1,878 1,784 1,483 5 27
Balance sheet highlights (AED mn) March’23 Dec’22 March’22 ∆QoQ% ∆YoY%
Total assets 501,423 497,842 445,677 1 13
Net loans and advances 263,533 258,493 245,797 2 7
Deposits from customers 310,587 308,931 261,891 1 19
Key metrics (%) Q1’23 Q4’22 Q1’22 ∆QoQ bps ∆YoY bps
CAR (Capital adequacy ratio – Basel III) 15.67 15.77 16.02 (10) (35)
CET1 (Common equity tier 1) ratio 12.93 12.96 13.03 (3) (10)
Liquidity coverage ratio (LCR) 132.9 138.9 126.1 (600) 680
Loan to deposit ratio 84.9 83.7 93.9 120 (900)
CASA/total customer deposits 51 50 58 100 (700)
Non-performing loan (NPL) ratio 5.42 5.25 5.71 17 (29)
Provision coverage ratio(2) 92.4 93.0 86.9 (60) 550
NPL ratio including POCI(3) 6.06 6.07 7.10 (1) (104)
Cost of risk (COR)(4) 0.75 1.21 0.30 (46) 45
Cost to income ratio 31.5 29.6 38.1 190 (660)
Net interest margin (NIM) 2.69 2.72 2.28 (3) 41
Risk adjusted NIM 2.00 1.61 1.99 39 1
Return on average tangible equity (ROATE) 14.3 15.1 12.6 (80) 170
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 investment
Q1 2023 Earnings Press Release and Management Discussion & Analysis 5Investor Relations
Key highlights
Steady growth in diversified income streams and significantly improved
cost to income ratio in line with guidance
> Net interest income in Q1’23 was AED 2.851 billion, up 33% YoY, driven by increased lending and
rising benchmark rates. Net interest margin (NIM) of 2.69% increased by 41 bps YoY and was 3 bps
lower QoQ. The slight sequential decline was on account of higher interest in suspense reversals
recorded in Q4’22. Risk-adjusted NIM improved 39 bps QoQ on lower impairment charges.
> The Bank’s non-interest income remained a source of strength in Q1’23, increasing 34% YoY to
AED 1.061 billion. The sequential decrease of 29% was primarily due to one-off gains recorded
in the previous quarter related to the sale of NPLs, resulting in other operating income decreasing
to AED 73 million in Q1’23 from AED 595 million in Q4’22.
> Net fee and commission income of AED 533 million increased 9% YoY and was 14% lower
QoQ. Gross card-related fees were up 9% and gross loan processing fees were up 8% YoY.
The Corporate and Investment Banking Group continued to increase fee income, driven by
prominent ECM and DCM mandates. Net trading income in Q1’23 was AED 455 million, up 78%
QoQ and 290% YoY, mainly on account of higher gains from derivatives, foreign exchange and
financial assets at fair value through profit or loss.
> The Bank’s cost to income ratio improved 660 bps YoY to 31.5% in Q1’23, in line with medium
term guidance. Operating expenses of AED 1.231 billion were 10% higher YoY on continued
investment in people and technology to support growth, including higher commission paid to
Retail and SME agents on increased sales volumes. Sequentially, operating expenses were 5%
lower on decreased staff costs due to the timing of variable pay accruals and payments, while
marketing expenses and maintenance costs also reduced.
> Net impairment charges of AED 748 million was 37% lower sequentially, on account of higher
provisioning in Q4’22 due to a couple of corporate accounts. The 154% increase YoY was partially
due to significant releases in Q1’22 as the UAE economy rebounded from the global pandemic.
> ADCB reported a record net profit of AED 1.878 billion in Q1’23, an increase of 27% YoY and 5%
QoQ. Return on average tangible equity was 14.3% compared to 12.6% in Q1’22.
Assets exceed AED 500 billion milestone, while strong franchise delivered
continued deposit growth, with CASA deposits rising AED 5 billion in Q1’23
> Sustained balance sheet strength, with total assets of AED 501 billion, up 1% from Dec-end and
13% higher YoY.
> Net loans and advances to customers were AED 264 billion, up 2% from Dec’22 and 7% higher
YoY. Floating interest rate loans represented 74% of total loans. Growth was broad-based, with
AED 20 billion in new credit extended to corporates in diverse economic sectors including
trading, financial institutions and manufacturing, as well as personal loans. The Bank received
AED 15 billion in repayments during the quarter.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 6Investor Relations
> The Group’s investment securities were AED 118 billion, up 5% QoQ and 22% YoY, with 57%
accounted for at amortised cost and 43% at fair value through other comprehensive income
(FVTOCI) and marked to market on a daily basis. The Bank was a net lender of AED 14 billion in
the interbank markets as at March-end.
> Total customer deposits stood at AED 311 billion, up 1% QoQ and 19% YoY. CASA deposits
increased by AED 5 billion during the quarter to AED 158 billion, representing 51% of total customer
deposits. CASA deposits were well-balanced across the business, with Corporate and Investment
Banking accounting for 50%, and Retail Banking and Private Banking representing 50%.
> Total shareholders’ equity was AED 62 billion as at 31 March 2023, compared to AED 61 billion
at Dec-end.
> The Bank continues to be well-capitalised with capital adequacy (Basel III) and CET1 ratios of
15.67% and 12.93% respectively as at 31 March 2023, versus 15.77% and 12.96% at the end
of 2022.
> ADCB continues to have a robust liquidity position, with a liquidity coverage ratio of 132.9%, a
liquidity ratio of 31.5% and a loan to deposit ratio of 84.9% as at 31 March 2023.
Cost of risk trending in line with guidance of 80 bps amid a resilient
UAE economy
> Cost of risk of 75 bps in Q1’23, remained steady versus 76 bps in FY’22 and in line with medium-
term guidance of 80 bps.
> The NPL ratio was 5.42% compared to 5.25% at Dec-end, and including net POCI (purchase or
originated credit impaired) assets, the NPL ratio was stable at 6.06%.
> The provision coverage ratio was 92.4% compared to 93.0% at Dec-end, while including collateral
held, it was 143% compared to 144% at year-end.
Digital platforms instrumental in onboarding quarterly record of 114,000
new retail customers
> ADCB welcomed over 114,000 new retail banking customers in Q1’23, the highest ever in a
quarter, with 80% onboarded digitally.
> Digital banking subscribers increased 30% and active users were up 36% YoY. 87% of customers
are now registered for digital banking (internet and mobile) platforms.
> Activity on ADCB’s digital platforms continued to increase, with retail digital transactions rising
34% YoY to over 40 million in Q1’23, while mobile fund transfers were up 66% YoY. Self-service
retail transactions represented 96% of all customer transactions in Q1’23.
> ADCB and Al Hilal Bank entered a new partnership with digital bank Nomo, part of Bank
of London and Middle East (BLME), to allow UAE residents to open United Kingdom-based
Shari’ah-compliant multi-currency current and savings accounts, as well as to access UK home
financing through dedicated apps.
> ADCB’s IPO portal continued to provide customers with convenient access to new investment
opportunities, accounting for 93% of total subscriptions received by the Bank for the ADNOC Gas
and Al Ansari IPOs, totalling AED 485 million of orders.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 7Investor Relations
> ADCB launched 11 digital enhancements in Q1’23, including introduction of a bill payment service
through WhatsApp.
> Wholesale Banking transactions on the ProCash and ProTrade platforms accounted for 97% of
all cash management transactions and 65% of trade finance transactions, respectively. The Bank
enhanced the ProCash digital platforms, by improving efficiency and security measures, such as
the integration of facial recognition to the ProCash mobile app.
ADCB signs UAE Climate-Responsible Companies Pledge and makes
progress in measurement of Scope 3 emissions
> Ahead of the UAE’s hosting of the COP28 climate conference this year, ADCB signed the UAE
Climate-Responsible Companies Pledge in January 2023. The initiative of the UAE Ministry for
Climate Change and Environment requires signatories to commit to disclosing their plans to reduce
greenhouse gas emissions and to integrate climate considerations throughout their operations.
> The Bank completed a baseline assessment of clients’ financed emissions in accordance
with Partnership for Carbon Accounting Financials (PCAF) standards, a critical exercise for the
measurement of future progress on Scope 3 emissions.
> ESG has been embedded in to Corporate and Investment Banking Group’s account planning
processes to facilitate the Bank’s support for clients on ESG-related opportunities.
> ADCB published its ‘2022 Sustainability Review’, including 31 ESG KPIs as defined by Abu Dhabi
Securities Exchange (ADX), with third-party assurance by Deloitte.
> A bank-wide e-learning module on the UN Sustainable Development Goals (SDGs) was rolled out to
all employees, with bespoke sustainability training provided to executive and senior management.
ADCB Egypt sustains strong growth momentum
> ADCB Egypt continues to experience strong growth momentum supported by increased loans
and deposits, while moving ahead with digital transformation to enhance the customer experience.
During the quarter, ADCB Egypt joined Instapay, Egypt’s mobile payment network, enabling the
Bank’s customers to transfer money from their mobile device and manage multiple accounts.
– Net profit (1) in Q1’23 increased 92% YoY to EGP 363 million, representing a return on
equity of 22%
– Net loans increased 3% QoQ to EGP 31 billion as at 31 March 2023
– Total deposits increased 2% QoQ to EGP 77 billion as at 31 March 2023
– Digital transformation continued to gain momentum, with digital subscribers increasing
by 79% YoY
(1) Based on IFRS
Q1 2023 Earnings Press Release and Management Discussion & Analysis 8Investor Relations
Al Hilal Bank attracted +27,000 new banking customers in Q1’23, bringing
the total to c.160,000 since launch of super app
> Al Hilal Bank’s new super app attracted over 65,000 new registered users in Q1’23, with more than
27,000 subscribing to banking services. This brought total new banking customers onboarded by
the app to c.160,000 since its launch in February 2022.
> The super app has experienced strong levels of engagement, with an average of over 3,200
transactions carried out daily. The Bank continues to develop its ecosystem of strategic commercial
partnerships to enhance the app’s virtual market place and range of family-focused services.
> Al Hilal Bank enhanced the speed and efficiency of the onboarding process on its super app by
maximising the application of the “UAE Pass” national digital identity system -- earning recognition
as the top finance application for integrating the UAE Pass.
> Al Hilal Bank is extending its reach through the app beyond its core Abu Dhabi market, with
residents of Dubai and the Northern Emirates accounting for 27% and 35% of banking customers,
respectively.
> In line with Al Hilal Bank’s transition to a fully digital, cloud-based Islamic bank, five branches were
closed during the first quarter.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 9Investor Relations
ADCB Q1 2023 and 2022 awards and recognition
THE ASIAN BANKER EXCELLENCE GLOBAL FINANCE 2022 MIDDLE EAST WEALTHTECH
IN RETAIL FINANCIAL SERVICES AWARDS 2022
Best Trade Finance Provider
AWARDS 2023
in the UAE Global Deal of the Year
Best Retail Bank in Middle East
Best Retail Bank in UAE
MEA FINANCE EUROMONEY CASH
MANAGEMENT SURVEY 2022
Best Online Banking Service
THE ASIAN BANKER MIDDLE Best Service: Overall, Business
EAST & AFRICA 2022 - Functions, Financial Facilities,
EXCELLENCE IN RETAIL Personnel, Services, Tech Provisions
FINANCIAL SERVICES AWARDS CAMBRIDGE INTERNATIONAL in the Middle East
FINANCIAL ADVISORY, UK
Best Mobile Banking Service
Best Islamic Retail Banking Window
in the UAE
in the UAE 2022 MENA BANKING
EXCELLENCE AWARDS 2022
ABF WHOLESALE BANKING Excellence in Employee Engagement
AWARDS 2022 FORBES
UAE Domestic Trade Finance Bank ADCB ranked top GCC bank in
of the Year Forbes 2022 survey ARC AWARDS 2022
'World’s Best Employers'
Gold Award
Best International Annual Report
THE DIGITAL BANKER
MIDDLE EAST AND AFRICA THE MARTECH POWER LIST 2022
RETAIL BANKING INNOVATION
AWARDS 2022 Loyalty Leaders GTR LEADERS IN TRADE AWARDS
Best eKYC for Self-Service KYC Update Best Trade Bank in MENA
Initiative via Internet Banking, Mobile
PFI AWARDS
Banking and KYC portal
Highly Acclaimed in the Best Digital Global Deal of the Year ZURICH SUSTAINABILITY
Transformation Program category AWARD 2022
(for IPO Portal)
Adoption of Digital Platform
ADCB Egypt 2022 awards and recognition
THE DIGITAL BANKER INTERNATIONAL FINANCE INTERNATIONAL BUSINESS
MAGAZINE
Best Graduate Employment Best Finance Inclusion Package
Program 2022 Towards People with Disabilities Best Digital Banking Services Provider
Egypt 2022 Egypt 2022
Excellence in Digital
Innovation 2022 Most Innovative New Digital Bank Best Mobile Banking Egypt 2022
Egypt 2022
Best Financial Inclusion Best Online Banking Egypt 2022
Initiatives 2022
Best Financial Inclusion Initiative
Egypt 2022
GLOBAL FINANCE 2022
WORLD BUSINESS OUTLOOK Best User Experience 2022
Best New Bank Egypt 2022 WORLD UNION
OF ARAB BANKERS
Fastest Growing Retail Bank
Egypt 2022 The Fastest Bank in Terms of Growth
and Development
Fastest Growing Corporate Bank
Egypt 2022
Fastest Growing Bank Egypt 2022
Q1 2023 Earnings Press Release and Management Discussion & Analysis 10Investor Relations
Further 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.
Q1 2023 Earnings Press Release and Management Discussion & Analysis 11

Sentiment: neutral