ADCB sets Dh20 billion profit target in new growth strategy

Dubai: To mark a key milestone in its operations, Abu Dhabi’s ADCB has set sights on powering its way to Dh20 billion in profits in 5 years.
If that goal is reached, it would mean a doubling of net profit, while it aims to achieve an annual growth rate of around 20%.

There will be also be an increase on a year-on-year basis of dividends over the same period, where ‘ADCB aims to increase its total targeted dividend payout to approximately Dh25 billion over the next five years’.
That’s up a whopping 50% compared to the total dividend payout in the preceding 5 years.
All of which would mean delivering an annual return on equity of 15% plus each year, while ‘maintaining healthy regulatory ratios and an adequate capital position to fuel future growth’.

“A detailed strategy blueprint has been approved by the Board, laying out a clear way forward on how to achieve this ambition,” said ADCB in a statement.

That would lead to faster ‘deployment of digital and AI technology to elevate customer experience, enhance risk management and boost productivity while empowering UAE nationals to lead the transformation of the banking industry’.
ADCB’s bumper 2024
For 2024, ADCB recorded profit before tax of Dh10.5 billion, which derived net profit of Dh9.4 billion.

The operating income swelled to Dh19.4 billion, as ADCB and the wider UAE banking sector closed out one of its best years. If not the best to date.
The Abu Dhabi headquartered bank’s net loan growth was higher 16%, while the non-performing loan ratio was kept bound to 3.04%.
2024 dividend
The Board recommended a cash dividend of Dh0.59 per share, translating into a dividend yield of 5.7% (based on ADCB’s closing share price as of 31 December 31, 2024.) ADCB’s stock is currently at Dh10.8.

Total assets were at Dh653 billion, an increase of 15% year-on-year. Net loans of Dh351 billion were up 16% (or by Dh49 billion) on an annual basis.
“The Bank’s ambition continues to be forward looking, and attuned to the pace and promise of the Nation’s next phase of economic transformation,” said Khaldoon Khalifa Al Mubarak, Chairman of ADCB.