The banking group recommended a cash dividend of AED 0.38 per share/iStockby Kudakwashe Muzoriwa
ADCB Group has posted AED 3.29 billion in operating income in Q4 2019, a three per cent year-on-year increase owing to higher non-interest income.
The lender also reported a 31 per cent increase in non-interest income to AED 583 million and a two per cent decrease in operating expenses to AED 1.28 billion.
Ala’a Eraiqat, ADCB Group’s Group Chief Executive Officer and Board Member, said, “Our fourth-quarter results show that the benefits of the merger are already coming through in our financial performance, and the impact of synergies will increase as we complete full integration.”
The banking group recorded an improvement in its cost to income ratio, which decreased by 440 basis points (4.4 per cent) year on year to 35.1 per cent in Q4 2019.
However, ADCB Group’s net profit slipped 16 per cent to AED 1.04 billion due to an increase in impairment charges.
ADCB reported a net profit of AED 1.05 billion ($285.89 million) in Q4 2019, down from AED 1.24 billion a year earlier. The banking group also recommended a cash dividend of AED 0.38 per share.
Eissa Mohamed Al Suwaidi, the Chairman of ADCB Group said that 2019 was a transformational year for the ADCB Group, following the merger with Union National Bank and subsequent acquisition of Al Hilal Bank.
The merged entity benefits from resilience as well as the scale necessary to navigate continued challenges and the financial strength to take advantage of new growth opportunities.