ABU DHABI: Abu Dhabi Commercial Bank’s (ADCB) loan growth in 2024 was largely driven by lending to government and public sector entities, which accounted for 27.5 per cent of its total gross loans at the end of December, up from 25.19 per cent a year earlier.
This segment remains the largest for ADCB, whose total loans and advances expanded more than 25 per cent during the year, rising from AED78.79 billion to AED98.94 billion.
As the second-largest bank in Abu Dhabi, ADCB maintains strong ties to the emirate’s government. Mubadala Investment Company, which is fully owned by the Government of Abu Dhabi, holds a 60.69 per cent stake in ADCB through its subsidiaries.
The bank’s gross loans grew from AED312.68 billion to AED360.47 billion in 2024, marking a 15.29 per cent increase. However, the rise in lending to government and public sector entities outpaced the overall loan growth, reflecting the strategic role ADCB plays in financing Abu Dhabi’s public sector.
ADCB’s total assets expanded from AED567.194 billion to AED652.814 billion during the year, while investments in securities increased from AED128.27 billion to AED143 billion. Deposits from customers rose from AED362.90 billion to AED421.08 billion, further strengthening the bank’s balance sheet.
Strong performance in Q4 2024
ADCB posted a net profit of AED2.57 billion ($700 million) for the fourth quarter of 2024, a 5 per cent increase from the same period last year. Profit growth was driven by a sharp rise in non-interest income, which surged 57 per cent year-on-year to AED1.96 billion from AED1.24 billion. Net interest and Islamic financing income rose 3 per cent to AED3.5 billion.
The bank’s net loans and advances expanded 16 per cent year-on-year to AED350.63 billion, while deposits also grew 16 per cent to AED421.06 billion.
Full-year performance
For the full year, ADCB reported a net profit of AED9.42 billion, up 15 per cent from AED8.21 billion in 2023. Total net interest income rose 7 per cent to AED13.22 billion, reflecting steady growth in its core lending business. By the end of 2024, total assets had grown 15 per cent to AED652.81 billion, underscoring ADCB’s financial stability and strategic expansion.
Additionally, the bank achieved an “AA” ESG rating upgrade from MSCI, highlighting its ongoing commitment to environmental, social, and governance principles.
