UAE-based Abu Dhabi Commercial Bank (ADCB) reported a 32% YoY increase in net profits to AED 1.48bn($400mn) during the Q1 2022 driven by steady operating performance and lower cost of risk. Total income remained steady at AED 2.93bn ($800mn) against AED 2.92bn ($790mn) the previous year. Impairment charge declined by 58% to AED 294mn ($80mn) during Q1 on higher recoveries and improved economic conditions. Net fees and commission income of AED 487mn ($132.6mn) were up 10% YoY as loan processing fees increased 12%, trade finance commission up 19% and card-related fees were up 9%. As of Q1, ADCB had an NPL ratio of 5.71%, rising 32bp sequentially due to few corporate accounts. ADCB has restructured its exposure to troubled UAE hospital operator NMC and received 37.5% of transferable exit instruments in a $2.25bn facility issued by NMC HoldCo SPV Ltd., a new holding company for NMC’s operations in UAE and Oman following the successful completion of a debt restructuring process and exit from the administration on March 25 2022. As of Q1 its CET 1 ratio was at 13.03% whilst maintaining a strong liquidity, with a liquidity coverage ratio (LCR) of 126.1%. During the quarter, subscriptions to the ADCB’s internet and mobile banking platforms increased by 16% YoY to more than 1 million customers.

ADCB’s dollar bonds were trading slightly higher, its 4% 2023s up over 0.03 points to 101.04 yielding 2.79%.

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