
S&P Global Ratings highlighted ADCB's "sound earnings generation and high capital retention" as pivotal factors underpinning its robust capitalisation. The agency also noted that the bank's asset quality is expected to benefit from enhancements in its risk management culture and control framework over the past four years, positioning it to better navigate economic cycles.
Since the implementation of its previous strategy in 2020, ADCB has experienced significant growth. Profit before tax increased at a compound annual growth rate of 28%, surpassing AED 10 billion in 2024, achieving this milestone a year ahead of schedule. The bank's total assets expanded by 59% since the end of 2020, exceeding AED 650 billion in 2024. Net loans grew at a 10% CAGR, with exposure to government-related entities rising to 27% of gross loans from 21% in 2020. Concurrently, ADCB attracted substantial deposit inflows, with a 14% CAGR since 2020.
In terms of risk management, ADCB reduced its exposure to high-risk sectors, notably real estate and construction, decreasing from 29% of total exposures in 2020 to 14% by the end of 2024. This strategic rebalancing towards more creditworthy government and public sector entities reflects the bank's commitment to maintaining a prudent risk profile.
The upgraded credit rating is expected to support ADCB's new strategic objective of doubling its net profit to AED 20 billion within the next five years. The high investment-grade rating facilitates a favourable cost of capital, enabling the bank to implement its growth strategy effectively.
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