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IInnvveessttoorr RReellaattiioonnss AADDCCBBADCB REPORTS RECORD HALF-YEAR NET PROFIT
OF AED 3.059 BN, UP 21%, AND Q2 NET PROFIT
OF AED 1.575 BN, UP 12%
Abu Dhabi, 28 July 2022 – Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”)
today reported its financial results for the second quarter of 2022 (“Q2’22”).
Strong performance in context Key highlights Q2’22
of rising rates and strong UAE
economic fundamentals 1.575 bn
Net profit
(AED)
Key highlights - Q2’22
> Net profit of AED 1.575 bn increased 6% QoQ and 12% YoY
14.2%
> Net interest income of AED 2.571 bn increased 20% QoQ
and 11% YoY Return on average
tangible equity
> Non-interest income of AED 924 mn increased 17% QoQ
and 10% YoY
> Operating income of AED 3.495 bn increased 19% QoQ 12.37%
and 11% YoY
CET1
> Operating profit before impairment allowances of
AED 2.268 bn increased 25% QoQ and 8% YoY
135.3%
Key highlights - H1’22 vs. H1’21
Liquidity
coverage ratio
> Net profit of AED 3.059 bn increased 21%
> Net interest income of AED 4.718 bn increased 6%
78 bps
> Non-interest income of AED 1.713 bn increased 4%
Cost of risk
> Operating income of AED 6.431 bn increased 6%
> Impairment charges of AED 950 mn decreased 31%
> Operating profit before impairment allowances of 4.086 bn
increased 3%
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 2Strong liquidity position driven by significant increase in deposits
(All numbers are as at 30 June 2022 unless otherwise stated)
> Total assets of AED 476 bn increased 8% from Dec’21
> Net loans were AED 243 bn at June-end, while total customer deposits of AED 292 bn increased
10% from Dec’21. CASA (Current and savings account) deposits were AED 159 bn at June-end, up
AED 6 bn from year end, and comprised 54.4% of total customer deposits
> Capital adequacy and CET 1 ratios were 15.22% and 12.37% respectively
> Liquidity coverage ratio (LCR) of 135.3%
> Cost of risk was 78 bps for Q2’22 and 54 bps for H1’22. NPL ratio was at 5.59% (6.74% including
POCI), while provision coverage ratio was 89.8% (147% including collateral held)
(Continued on next page)
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 3ALA’A ERAIQAT Group Chief Executive Officer
ADCB is pleased to report a record half-year net profit of AED 3.059 billion, an increase of 21% year
on year, representing a return on average tangible equity of 13.2%.
These solid financial results reflect the successful implementation of our five-year strategy as the Bank
continues to invest in digital transformation to support the next phase of expansion.
Our balance sheet remains a source of strength for ADCB. The Bank also benefits from healthy capital
ratios and liquidity positions, with a liquidity coverage ratio of 135.3%, and loan-to-deposit ratio at
historically low levels.
ADCB is accelerating its digital transformation to provide premium service to a consistently expanding
customer base. Our onboarding app has maintained strong momentum, opening more than 65,000 new
accounts digitally in Q2, the highest number in a single quarter and representing 79% of all new-to-bank
retail customers in the period. Meanwhile, the ADCB Mobile Banking app has now crossed the milestone
of 950,000 subscribers.
+65,000
Record number of customers onboarded
digitally in a quarter
Major subsidiaries are also making a stronger contribution to the Group, with ADCB Egypt reporting a
25% increase in first half net profit in local currency terms, while Al Hilal is experiencing good traction in its
new digital marketplace platform, with 77,000 new registered users since its launch in February.
Over the past two years, as the UAE successfully navigated the global pandemic into a robust recovery,
ADCB has played a key role in protecting and promoting the interest of all its stakeholders. As a result,
the Bank remains well positioned to make strong progress in the years ahead, contributing to the further
sustainable growth of the UAE economy.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 4DEEPAK KHULLAR Group Chief Financial Officer
The Bank delivered a robust performance in the second quarter, with net profit improving 12%
year on year to AED 1.575 bn, supported by rising rates and higher non-interest income in a context of
improving UAE economic fundamentals.
Key financial highlights include a 19% quarterly increase in revenues and a 25% sequential improvement
in operating profit, despite growing inflationary pressures. The Bank also improved its risk-adjusted net
interest margin in the first half as a result of a strategic rebalancing of our loan portfolio. We continue to
increase lending to targeted economic sectors including manufacturing, trading and energy, while further
reducing exposure to real estate.
+19%
Quarterly increase in revenues
Deposits increased by 10% during the first half, further enhancing the Bank’s liquidity position. At the
same time, we continued to capitalise on our robust lending pipeline, with AED 35 billion of new credit
extended in the first half of the year.
The Bank maintains healthy asset quality metrics, with a cost of risk of 54 basis points in H1’22, in-line with
our medium-term guidance, while our NPL and provision coverage (including collateral) ratios improved
to 5.59% and 147% respectively.
In parallel, ADCB has taken important steps to enhance resilience through the adoption of a new ESG
strategy, which is overseen by the Board of Directors. The approach reinforces the Bank’s commitment
to robust governance and rigorous risk management, and also sets out clear areas of focus in relation to
climate, customers and communities, as well as employees.
ADCB is in a strong financial position, benefiting from a robust balance sheet and diversified income
streams through each of our business segments. The Bank is well prepared to weather an increasingly
challenging global economic environment and to grasp opportunity to support the resilience of the UAE
economy as the country implements growth and diversification strategies.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 5ABU DHABI COMMERCIAL BANK
Q2/H1 2022 MANAGEMENT DISCUSSION & ANALYSIS
Q2/H1 2022 FINANCIAL HIGHLIGHTS
Income statement highlights (AED mn) H1’22 H1’21 ∆ YoY% Q2’22 Q1’22 Q2’21 ∆ QoQ% ∆ YoY%
Total net interest and Islamic financing income 4,718 4,434 6 2,571 2,146 2,315 20 11
Non-interest income 1,713 1,643 4 924 789 840 17 10
Operating income 6,431 6,077 6 3,495 2,936 3,155 19 11
Operating expenses (2,345) (2,116) 11 (1,227) (1,118) (1,055) 10 16
Operating profit before impairment allowances 4,086 3,961 3 2,268 1,818 2,100 25 8
Impairment allowances (950) (1,382) (31) (655) (294) (678) 123 (3)
Net profit for the period1 3,059 2,524 21 1,575 1,483 1,402 6 12
Balance sheet highlights (AED mn) Jun'22 Jun’21 ∆ YoY% Jun’22 Mar’22 Dec'21 ∆ QoQ% ∆ YTD%
Total assets 476,093 416,290 14 476,093 445,677 440,278 7 8
Net loans and advances 242,913 237,814 2 242,913 245,797 244,282 (1) (1)
Deposits from customers 292,262 250,564 17 292,262 261,891 265,052 12 10
YoY QoQ YoY
Key metrics H1’22 H1’21 ∆ bps Q2’22 Q1’22 Q2’21 ∆ bps ∆ bps
CAR (Capital adequacy ratio – Basel III) 15.22 16.32 (110) 15.22 16.02 16.32 (80) (110)
CET1 (Common equity tier 1) ratio 12.37 13.20 (83) 12.37 13.03 13.20 (66) (83)
Liquidity coverage ratio (LCR) 135.3 127.6 770 135.3 126.1 127.6 920 770
Loan to deposit ratio 83.1 94.9 (1,180) 83.1 93.9 94.9 (1,080) (1,180)
CASA/total customer deposits 54 57 (300) 54 58 57 (400) (300)
Non-performing loan (NPL) ratio 5.59 5.86 (27) 5.59 5.71 5.86 (12) (27)
Provision coverage ratio2 89.8 91.5 (170) 89.8 86.9 91.5 290 (170)
NPL ratio including POCI3 6.74 7.35 (61) 6.74 7.10 7.35 (36) (61)
Cost of risk4 0.54 0.82 (28) 0.78 0.30 0.81 48 (3)
Cost to income ratio 36.5 34.8 170 35.1 38.1 33.4 (300) 170
Net interest margin (NIM) 2.43 2.51 (8) 2.57 2.28 2.60 29 (3)
Risk adjusted NIM 1.92 1.73 19 1.86 1.99 1.82 (13) 4
Return on average tangible equity (ROATE) 13.2 11.3 190 14.2 12.6 13.1 160 110
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
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 6KEY HIGHLIGHTS
Record half-year net profit driven by broad-based growth in net interest
income, card fees and trading income as the UAE economy recovers
> Net interest income of AED 2.571 billion for Q2’22 was 20% higher sequentially and up 11% year
on year. Net interest margin (NIM) of 2.57% in Q2’22 increased 29 basis points sequentially, supported
by rising benchmark rates, higher interest in suspense reversals and fair value unwinds. H1’22 net
interest income of AED 4.718 billion was 6% higher over the prior year, while NIM was 2.43%, a
decrease of 8 basis points due to 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 1.92%
in H1’22, from 1.73% a year earlier.
> Cost of funds was 1.04% in Q2’22, up from 0.71% in the previous quarter and 0.66% in Q2’21 on
account of higher benchmark rates.
> The Bank continues to benefit from diversified income streams, with non-interest income of
AED 924 million in Q2’22, up 17% sequentially and 10% year on year. Net fee and commission income
of AED 505 million in Q2’22 increased 4% sequentially and 1% year on year, with card-related fees
(gross) rising 34% from the previous year. Net trading income of AED 259 million in Q2’22 increased
122% over the previous quarter and 49% year on year on account of higher FX and derivatives gains.
Non-interest income for H1’22 increased 4% to AED 1.713 billion, accounting for 27% of total
operating income.
> Cost to income ratio improved by 300 basis points sequentially to 35.1% in Q2’22 primarily on account
of higher revenues. In the context of growing inflationary pressures, operating expenses in Q2’22 were
up 10% sequentially and 16% year on year to AED 1.227 billion on account of higher compensation
costs and broad-based investment in the growth of the business, including in digital technology and
regulatory compliance.
> Net profit of AED 1.575 billion in Q2’22 increased 6% sequentially and 12% year on year, while first half
net profit reached a record AED 3.059 billion, representing a 21% increase year on year. Return on
average tangible equity was 14.2% for the second quarter and 13.2% for the first half of 2022.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 7Continued loan growth to targeted economic sectors offset by
repayments, while a rise in deposits reinforced robust liquidity position
> The Group’s balance sheet remains strong, with total assets of AED 476 billion as at 30 June 2022, up
8% year to date.
> ADCB continued to capitalise on a robust lending pipeline in H1’22, extending AED 35 billion in new
credit to targeted economic sectors, including energy, trading and manufacturing, as well as to retail
customers. However, net loans and advances of AED 243 billion declined 0.6% from December-end
as a result of repayments totalling AED 38 billion.
> Investment securities of AED 109 billion at June-end increased 13% year to date mainly on account
of an increase in government bonds. The Bank was also a net lender of AED 27 billion in the interbank
markets as at June-end.
> Total customer deposits of AED 292 billion increased by 10% from December-end. CASA deposits
increased 4% during the six-month period to AED 159 billion, while time deposits were up 19% to
AED 133 billion. CASA accounted for 54.4% of total customer deposits at June-end.
> The average loan balance was AED 242 billion in H1’22, and the average deposit balance
was AED 268 billion.
> Total shareholders’ equity stood at AED 58 billion as at 30 June 2022.
> The Bank remains well-capitalised with capital adequacy (Basel III) and CET1 ratios of 15.22% and
12.37% respectively as at 30 June 2022, versus 15.97% and 12.94% at December-end.
> ADCB’s liquidity position was enhanced during H1’22 resulting in a liquidity coverage ratio of 135.3%,
a liquidity ratio of 35.1% and a loan to deposit ratio of 83.1% as at 30 June 2022.
Healthy asset quality metrics, with cost of risk of 54 bps in H1’22
> Cost of risk improved significantly to 54 bps in H1’22 from 82 bps a year earlier, and was 78 bps in
Q2’22, in line with medium-term guidance of 80 bps.
> Impairment charge in H1’22 improved 31% year on year to AED 950 million. For the quarter,
impairment charges were 3% lower year on year at AED 655 million. This compares to
AED 294 million in Q1’22.
> The NPL ratio improved to 5.59% from 5.71% at March-end, and including net POCI (purchase or
originated credit impaired) assets, the NPL ratio was 6.74%.
> The provision coverage ratio increased to 89.8% from 86.9% in the previous quarter, while including
collateral held, it was 147% as at 30 June 2022 compared to 141% at March-end.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 8High level of customer engagement on digital channels underlines
ADCB’s focus on digital transformation
> The Bank maintained its focus on introducing digital enhancements for customers, with 11 digital
releases across its Consumer and Wholesale Banking businesses in Q2’22, taking the total to 114 since
the start of its digital transformation programme. 84% of retail customers are now registered to
digital channels.
> ADCB achieved its highest ever number of new account openings for a quarter via its onboarding
app, with more than 65,000 accounts opened digitally in Q2’22, representing 79% of all
new-to-bank retail customers during the period.
> Subscriptions to the Bank’s internet and mobile banking platforms increased by 19% year on year to more
than 1 million customers at the end of Q2’22. During the quarter, a record of c. 75,000 customers registered
on the ADCB Mobile Banking app, taking total subscribers to over 950,000, up 26% from a year earlier.
> In Q2’22, 96% of all retail transactions were conducted electronically, and digital fund transfers were
up 62% year on year. Over 8,300 IPO applications, representing AED 1.2 billion of subscriptions, were
received through ADCB’s digital platform.
> The Wholesale Banking Group introduced additional features on the ProCash platform to enhance
security, flexibility and functionality. Upgrades include a new card control feature to help corporates
control individual card usage, mitigating security and fraud risks.
> Transactions on the ProCash and ProTrade platforms accounted for 96% of all cash management
transactions and 71% of trade finance transactions, respectively.
Inaugural ESG report published following adoption of ESG strategy
setting out clear areas of focus
> ADCB continues to make strong progress on ESG, having adopted a formal strategy built on four key
pillars: Climate, Customers and communities, Employees, and Governance. The Bank published its
inaugural 2021 ESG Report at the end of Q2’22, prepared in accordance with international reporting
standards GRI and SASB, and with third-party limited assurance from Deloitte.
> ESG is now fully integrated into corporate strategy and steered by best practice governance, including
board oversight, executive pay linked to ESG KPIs, and a designated ESG team.
> To support the UAE’s transition to an inclusive, net zero economy, ADCB is committed to taking action
across the four pillars, including:
– Climate: AED 35 billion of green financing by 2030, establishing a green bond framework, and
achieving net zero in own operations by 2050
– Customers and communities: Leverage digital transformation to support financial inclusion
– Employees: Build a thriving workplace for talented and committed people, while ensuring
continued diversity
– Governance: Ensuring a responsible business with the highest ethical standards
> Since 2021, ADCB has maintained an MSCI ESG Rating of ‘AA’.
Q2/H1 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 184% year on year in Q2’22, with active digital customers up 124% and
e-Pay subscriptions increasing 51%.
– Net profit1 in H1’22 increased 25% year on year to EGP 404 million, representing a return on
equity of 13.2%
– Net loans increased 22% in H1’22 to EGP 26 billion as at 30 June 2022
– Total deposits increased 39% in H1’22 to EGP 57 billion as at 30 June 2022
Al Hilal digital marketplace attracts 77,000 registered users as
engagement gathers momentum
> Since its launch in February 2022, Al Hilal’s new cloud-based super app featuring a virtual market
place has acquired over 77,000 registered users as at the end of Q2’22.
> Al Hilal continues to enhance the banking and e-commerce product and service offering on the app,
which offers financial solutions and a wide range of other services through an ecosystem of
partnerships. The platform has recorded high daily engagement rates and received positive feedback,
particularly for the family value proposition that provides a highly differentiated experience, including
gamified financial education for children.
> The new platform builds on a track record of increasing digital engagement, with active users of
Al Hilal’s digital platforms up 29% year on year in Q2’22, and registered subscribers increasing 48%.
1 Based on IFRS.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 10ADCB H1 2022 and 2021 awards
INTERNATIONAL MENA BANKING GLOBAL FINANCE 2022
BUSINESS MAGAZINE 2022 EXCELLENCE AWARDS 2022
Best Trade Finance Provider
Best Trade Bank in MENA Excellence in Employee Engagement in the UAE
ASIAN BANKER AWARDS 2021 GULF CUSTOMER EXPERIENCE MIDDLE EAST INVESTOR
GOLD AWARDS 2021 RELATIONS ASSOCIATION
Best Customer Onboarding App (MEIRA) AWARDS 2021
(ADCB Hayyak) Customer Happiness
Best Annual Report in the Middle
Most Helpful Bank During Covid-19 Customers at the Heart East (Print Category)
in the Middle East and of Everything
United Arab Emirates
CX Team of the Year
EUROMONEY CASH
Most Recommended Retail Bank
MANAGEMENT SURVEY
in the Middle East and
United Arab Emirates MIDDLE EAST AND Best Service in the UAE
AFRICA RETAIL BANKING
INNOVATION AWARDS
ABF WHOLESALE
ISLAMIC RETAIL
BANKING AWARDS 2021 Outstanding Digital Acceleration in
BANKING AWARDS (IRBA)
Response to Covid-19
UAE Domestic Trade Finance
The 2021 Investor in People
Bank of the Year Digital Lending Product of the Year,
via ADCB Mobile Banking App
ARC AWARDS 2021 Best Frictionless Credit Evaluation
Bronze Award Best International Best API Initiative
(Annual Report)
ADCB EGYPT H1 2022 awards
INTERNATIONAL WORLD
BUSINESS MAGAZINE BUSINESS OUTLOOK
Best Digital Banking Services Provider Best New Bank
Egypt 2022 Egypt 2022
Best Mobile Banking Fastest Growing Retail Bank
Egypt 2022 Egypt 2022
Best Online Banking Fastest Growing Corporate Bank
Egypt 2022 Egypt 2022
Best Financial Inclusion Initiative Fastest Growing Bank
Egypt 2022 Egypt 2022
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 11Further information on ADCB can be found at adcb.com/ir
or by contacting:
Corporate Communications Abu Dhabi Commercial Bank
Majdi Abd El Muhdi Sheikh Zayed Bin Sultan Street
Email: majdi.a@adcb.com P. O. Box: 939, Abu Dhabi
adcb.com
Investor Relations
Denise Caouki
Email: ir@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.
Q2/H1 2022 Earnings Press Release and Management Discussion & Analysis 12

Sentiment: neutral