ABU DHABI COMMERCIAL BANK PJSC 2023 ANNUAL REPORT
DRIVEN BY
PEOPLE.
DESIGNED FOR THE FUTURE.
Cover: Aysha Al Hallami, Board Member and Chair of the Board Audit Committee
2023 ADCB Annual Report | DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE. |
Table of contents
Scope of reporting
The data presented in this report covers Abu Dhabi Commercial Bank PJSC (referred to as 'ADCB Group'), all its subsidiaries and branches within and outside of the UAE, unless stated otherwise.
The entities covered include the following:
- Abu Dhabi Commercial Bank, UAE (ADCB UAE)
- Al Hilal Bank PJSC, UAE (AHB UAE)
- Al Hilal Bank, Kazakhstan (AHB Kazakhstan)
- Abu Dhabi Commercial Bank - Egypt SAE (ADCB Egypt)
- ADCB Securities LLC (ADCB Securities)
- ADCB Asset Management Limited (ADCB Asset Management)
- ITMAM Services LLC and ITMAM Services FZ LLC (ITMAM)
- Abu Dhabi Commercial Properties LLC (ADCP)
- Abu Dhabi Commercial Engineering Services LLC (ADCE)
The UAE's vibrant socio-economic | |
landscape | 6 |
ADCB overview | |
ADCB at a glance | 12 |
Creating stakeholder value | 18 |
Awards and recognition | 20 |
Driven by people | |
Designed for the future | 22 |
Strategic review | |
Chairman's message | 38 |
Economic overview | 40 |
Group CEO's message | 42 |
Group strategy | 46 |
Group CFO's message | 48 |
Financial review | 52 |
Sustainability | |
Introduction | 62 |
Our climate framework | 65 |
ADCB joins UN Net Zero Banking Alliance | 69 |
Our climate journey | 70 |
Strategy, governance and other enablers | 72 |
ADCB's sustainability strategy | 74 |
Best practice ESG governance | 76 |
Other ESG strategic enablers | 78 |
Business review
Retail Banking Group | 84 |
Corporate & Investment Banking Group | 90 |
Private Banking & Wealth Management Group | 98 |
Treasury & Investments Group | 102 |
Property Management | 104 |
Al Hilal Bank | 106 |
ADCB Egypt | 110 |
Other subsidiaries | 114 |
Strategic priorities
Our people | 118 |
Emiratisation | 122 |
Delivering a digital future | 130 |
Driving service excellence | 136 |
Risk management
Risk review | 144 |
Compliance | 158 |
Governance
Corporate Governance Report | 166 |
Financials
Financial statements | 272 |
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HIS HIGHNESS SHEIKH MOHAMED BIN ZAYED AL NAHYAN
PRESIDENT OF THE UNITED ARAB EMIRATES AND RULER OF ABU DHABI
SUPREME COMMANDER OF THE UAE ARMED FORCES
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HIS HIGHNESS SHEIKH MANSOUR BIN ZAYED AL NAHYAN | HIS HIGHNESS SHEIKH KHALED BIN MOHAMED BIN ZAYED AL NAHYAN |
UAE VICE PRESIDENT | CROWN PRINCE OF ABU DHABI |
DEPUTY PRIME MINISTER AND CHAIRMAN OF THE PRESIDENTIAL COURT | CHAIRMAN OF THE ABU DHABI EXECUTIVE COUNCIL |
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The UAE's vibrant socio-economic landscape
The UAE is driving rapid transformation, focused on diversification and the transition to an inclusive, net zero economy. The country's leadership is guiding a number of strategic initiatives to develop a world-class business, investment and lifestyle destination, creating a vibrant socio-economic landscape that provides significant opportunity.
2023 ADCB Annual Report | DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE. | |
Promoting sustainability
ABU DHABI SUSTAINABILITY WEEK
Abu Dhabi Sustainability Week, a UAE-led global initiative, promotes sustainable development and environmental action. Launched by H.H. Sheikh Mohamed Bin Zayed Al Nahyan, President
of the UAE and Ruler of Abu Dhabi, the event was presided over by H.H. Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and H.E. Dr. Sultan Al Jaber, the COP28 President.
Advancing the energy transition
BARAKAH NUCLEAR ENERGY PROJECT
The Emirates Nuclear Energy Corporation's flagship Barakah Nuclear Energy Plant, located in the Emirate of Abu Dhabi, is scheduled for full four-unit operations in 2024. The plant will generate 25% of the UAE's electricity needs for the next 60 years, while preventing the equivalent of 22.4 million tons of carbon emissions annually.
Shaping a global financial centre
ABU DHABI FINANCE WEEK
Abu Dhabi Finance Week has become a key event as Abu Dhabi continues to grow as a major global finance and business hub. In 2023, H.H. Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, inaugurated the event, which was focused on sustainable investment.
Leadership on climate
THE COP28 GLOBAL CLIMATE SUMMIT In November 2023, the UAE hosted the global climate summit, COP28, reflecting the nation's growing commitment to collaborative climate action. The conference was attended by H.H. Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, H.H. Sheikh Mansour Bin Zayed Al Nahyan, Vice President and Deputy Prime Minister of the UAE, and H.H. Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
Nurturing Emirati talent
LAUNCH OF MAWAHEB TALENT HUB
- Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, launched the Mawaheb Talent Hub, aiming to equip Emiratis with capabilities and experiences tailored to the evolving requirements of the high skilled job market.
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Building world-class infrastructure
ETIHAD RAIL LAUNCH
Etihad Rail network was officially inaugurated in 2023 by
- Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The network of 900 km of track across the Emirates supports the country's sustainable development goals through the targeted reduction of carbon emissions in the road transport sector by 21% by 2050.
Leading on innovation and exploration
H.E. DR. SULTAN AL NEYADI COMPLETES SPACE MISSION
Emirati astronaut H.E. Dr. Sultan Al Neyadi returned from the longest Arab space mission on the International Space Station in 2023 - a significant milestone in the UAE's National Space Strategy. H.E. Dr. Sultan Al Neyadi was congratulated upon his return by H.H. Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, and H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Promoting Emiratisation in the private sector
THE NAFIS INITIATIVE
The UAE adopted a new law in 2023 requiring private companies with 20-49 employees to hire at least one Emirati national by 2024 and at least two by 2025, with larger companies required to achieve 2% annual Emiratisation growth. The Emirati Talent Competitiveness Council (NAFIS) is a Federal programme launched to support this initiative. The NAFIS Award Ceremony was attended by H.H. Sheikh Mohamed Bin Zayed
Al Nahyan, President of the UAE and Ruler of Abu Dhabi, and H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
2023 ADCB Annual Report
Creating a lifestyle destination
ABU DHABI GRAND PRIX
Abu Dhabi hosted the final race of the Formula One season in November, marking the 15th anniversary of the Etihad Airways Abu Dhabi Formula One Grand Prix. The event was presided over by H.H. Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and
- Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai. H.E. Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala Investment Company was also in attendance.
An international aviation hub
OPENING OF THE ZAYED INTERNATIONAL AIRPORT, ABU DHABI
Zayed International Airport in Abu Dhabi was opened in November 2023 to support the Emirate's growing stature as a major aviation hub. The terminal is the first in the world to include all nine biometric touchpoints, making the passenger experience seamless and convenient.
DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE.
Investing in technology
LAUNCH OF AI71
- Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, launched AI71, an AI company that is leveraging proprietary generative AI models developed by the Technology Innovation Institute, a global centre that is part of Abu Dhabi's Advanced Technology Research Council. The initiative supports Abu Dhabi's strategy to become a global hub for AI.
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ADCB at a glance
Creating stakeholder value
Awards and recognition
ADCB OVERVIEW
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ADCB AT A GLANCE
A leading UAE bank with a growing market share
ADCB is a major UAE financial institution, playing a central role in supporting the country's progressive agenda for sustainable economic growth. The Bank provides a diverse range of products and services to corporate and individual customers, delivering service excellence and a seamless digital experience.
2023 ADCB Annual Report | DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE. |
Ownership structure
Diverse workforce with Emiratisation as a key strategic priority
2,096 | AED | |
Emiratis employed | 567 bn | |
80+ | Third largest bank by total assets in the UAE | |
Nationalities | ||
Service excellence driving
16.2%
Market share - loans(2)
14.4%
Market share - deposits(2)
96%
Mubadala Investment Company: 60.20%
Free float domestic investors: 21.64%
Free float foreign investors: 18.16%
Contribution to operating income by business segments
customer growth
1.9 mn+
ADCB retail customers(1) | ||||
(# mn) | 1.93 | |||
1.49 | ||||
1.14 | 1.28 | |||
0.95 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
Operating income derived from the UAE
Retail
Banking
AED 4.7 bn
28%
AED
16.9 bn
Treasury and
Investments
AED 4.5 bn
27%
Corporate and Investment Banking AED 5.9 bn
35%
Private
Banking
AED 1.3 bn
8%
Property
Management
AED 0.4 bn
2%
73 | 89% | |||
Bankwide net promoter score(1) | Customers registered on | |||
Internet & Mobile Banking(1) |
(1) ADCB UAE only
Geographic footprint
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ADCB branches in the UAE
8 | 3 | 50 | ||
Al Hilal branches in the UAE | Al Hilal branches in Kazakhstan | ADCB Egypt branches | ||
(2) Based on ADCB's year-end financials and the latest data available from the UAE Central Bank as at 30 November 2023
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ADCB AT A GLANCE
creating long-term value for shareholders
Growing franchise strength
CAGR: +12% | CAGR: +25% | ||||||
8.2 | |||||||
5.2 | 5.2 | 6.4 | |||||
3.8 | |||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||
Net loans and advances and customer deposits (AED bn)
Net loans CAGR +5%, deposits CAGR +8%
248 | 262 | 239 | 251 | 244 | 265 | 258 | 309 | 302 | 363 |
2019 | 2020 | 2021 | 2022 | 2023 |
Net loans | Customer deposits |
CET1 and capital adequacy ratio (%)
15.48% | 16.61% | 15.97% | 15.77% | 16.22% |
12.11% | 13.30% | 12.94% | 12.96% | 12.86% |
2019 | 2020 | 2021 | 2022 | 2023 |
Capital adequacy ratio | CET1 |
Credit ratings
A/A-1/Stable | A+/F1/Stable |
2023 ADCB Annual Report | DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE. |
Long-term shareholder value creation
Dividend per share (AED) | 0.55 | 0.56 | |||||
0.38 | 0.37 | 0.18 | cash | ||||
0.27 | |||||||
0.37 | stock | ||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||
Basic earnings per share (AED)
1.07 | ||||
0.86(1) | ||||
0.70 | 0.73 | |||
0.51 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
Total shareholder return (%)
9% | 70% | 40% |
1-year TSR | 3-year TSR | 5-year TSR |
ESG ratings
A | 12.5 low risk(2) | |||||
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- Restated for stock dividend issued in 2023
- As at 13 January 2024
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ADCB AT A GLANCE
A responsible bank driving strong progress on sustainability
2023 ADCB Annual Report | DRIVEN BY PEOPLE. DESIGNED FOR THE FUTURE. |
Climate
Joined UN NZBA
Became third bank in MENA to join UN Net Zero Banking Alliance (NZBA)
Customers and Communities
280,000+
Accounts to unbanked or underbanked customers(1)
Employees
45%
Female employees(1)
Governance
18%
Female representation at the Board level(4)
AED
125bn
target
Tripled sustainable finance target to AED 125 bn by 2030
USD
650 mn
Green Bond
Successful issuance of second green bond, 2.9x oversubscribed
1.3 mn+
Number of participants in financial literacy initiatives(1)
110,000+
Active SME and microbusiness clients(1)
40%
Emirati representation in ADCB Group(2)
300,000+
Employee learning hours in 2023(3)
94%
Employees formally trained on information security, data privacy and protection
100%
Compliance with the UAE Information Assurance Standard, which comprises 698 information security related controls
- ADCB UAE only
- As per UAE CB definition, the Emiratisation ratio excludes non-financial entities, such as ITMAM, ADCP, ADCE and outsourced employees
- UAE operations only
- ADCB ranked highest among major GCC banks for female board representation based on S&P Global Market Intelligence, September 2022
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Disclaimer
Abu Dhabi Commercial Bank PJSC published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 12:24:07 UTC.