The Banking Executive Magazine - April 2021

ADCB PJSC Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today re- ported its financial results for the first quarter of 2021 (“Q1’21”). Strong financial performance driven by aggressive cost management dis- cipline, significantly higher non-in- terest income and marked improvement in cost of risk Q1’21 KEY HIGHLIGHTS • Net profit of AED 1.121 billion in- creased 436% year on year and 11% sequentially • Net interest income of AED 2.119 billion was 10% lower sequentially and 24% lower year on year mainly on account of the low in- terest rate environment and sub- dued macro-economic conditions. This was partially offset by higher non-interest income of AED 802 million, which was up 14% se- quentially and 17% year on year • Operating expenses of AED 1.061 billion decreased 20% year on year and 1% sequentially as the Bank continued to invest in digital offerings. Cost to income ratio of 36.3% in Q1’21 improved 180 basis points from a year earlier, driven by aggressive realisation of merger synergies, efficiencies de- rived from digital transformation and an additional programme of cost control measures • The Bank is firmly on track to ex- ceed its AED 1 billion cost synergy target for 2021, having captured cost synergies of AED 917 million in 2020 the BANKING EXECUTIVE 18 ISSUE 148 APRIL 2021 ADCB PJSC REPORTS FIRST QUARTER 2021 NET PROFIT OF AED 1.121 BILLION