Abu Dhabi Commercial Bank (ADCB)’s net income increased 5% y-o-y to AED 2.6 bn in 4Q 2024, on the back of “strong loan growth, enhanced efficiencies and significant improvement in cost of risk,” according to its earnings release (pdf). The bank recorded a 3% y-o-y increase in its net income from interest and Islamic financing during the quarter, amounting to AED 3.5 bn, while non-interest income experienced an increase of 57% y-o-y to AED 2.0 bn, driven by a 25% increase in income from fees and commission.

Over the full year, the lender saw its net income rise 15% y-o-y to AED 9.4 bn in 2024, while net income from interest and Islamic financing surged 7% y-o-y during the same period to AED 13.2 bn. The bank’s net loans were also up 16% y-o-y to AED 351 bn, it said.

Dividends: The board proposed a total payout of AED 4.3 bn in dividends, accounting for 46% of net income, the bank said.

Looking ahead, ADCB revealed a new five-year strategy aiming at doubling its bottom line to AED 20 bn, representing annual growth of 20%, it said in the statement. The bank also plans to increase total dividend payouts to AED 25 bn over the next five years — a 50% increase compared to the previous five-year period — while maintaining an annual return on equity of over 15%.

The bank will also focus on developing its digital and AI capabilities to improve customer experiences, productivity, and risk management, according to the strategy.

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