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Earnings season continues to be in full swing, with a handful of banks and other companies releasing results yesterday, including Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Tecom Group, and Q Holding.
ABU DHABI COMMERCIAL BANK-
ADCB net income up 38% in 2023: ADX-listed Abu Dhabi Commercial Bank (ADCB) saw its net income rise 38% y-o-y to a record AED 8.2 bn in 2023, on the back of “strong credit expansion in a higher interest rate environment and growth across diverse income streams,” according to its earnings release (pdf). The bank recorded a 21% y-o-y increase in its net income from interest and Islamic financing during the year, amounting to AED 12.4 bn.
The bank also extended a record amount of loans and mortgages, it said. Its credit card issuing business also grew to capture a 21% market share in the UAE, becoming the top issuer of credit cards in the UAE in 4Q 2024, according to the statement.
On a quarterly basis: The lender’s net income jumped 28% y-o-y to AED 2.45 bn in 4Q 2023, while net income from interest and Islamic financing surged 17% y-o-y during the same period to AED 3.41 bn.
Dividends: The board proposed a total payout of AED 4.1 bn in dividends, accounting for 50% of net income, the bank said.
COMMERCIAL BANK OF DUBAI-
CBD top line jumps 45.2% in 2023:Commercial Bank of Dubai ’s (CBD) net income surged 45.2% y-o-y in 2023 to a record AED 2.65 bn due to higher revenues and strong loan growth, according to the lender’s financials (pdf). The bank saw its operating income climb 29.5% y-o-y to AED 4.9 mn on the back of higher net interest income and improved fee and commission income, the lender said.
The bank’s assets increased 11% y-o-y to AED 129 bn, while net loans and advances hit AED 83.3 bn, marking a growth of 11.5% y-o-y. Customer deposits also grew 8.9% y-o-y to AED 88.3 bn in 2023.
Dividends: The board proposed a payout of some AED 1.2 bn in dividends, it said.
TECOM GROUP-
Business district developer Tecom Group saw its net income surge 49% y-o-y to a record AED 1.1 bn during 2023, driven by strong asset performance across all business sectors, according to the company’s latest earnings release (pdf). Tecom’s top line rose 10% y-o-y to AED 2.2 bn in 2023, primarily fueled by high occupancy rates, with commercial and industrial portfolios seeing 89% occupancy, and industrial lands seeing 94%.
On a quarterly basis: The real estate company’s net income rose 259% y-o-y to AED 311 mn in the final quarter of 2023, while revenues rose 17% y-o-y to AED 579 mn, according to the earnings release.
An increase in new customers also helped drive growth: “While the majority of our revenue is attributed to retained customers, we are also pleased with an almost 15% increase in the number of new customers from 2022,” Tecom Group CEO Abdulla Belhoul said.
Positive outlook for the year: “We anticipate the demand-induced growth momentum to be sustained in 2024 and beyond,” he added.
Dividends: The company’s board proposed a dividend payout of AED 400 mn in April for 2H 2023, according to the statement.
Q HOLDING-
ADX-listed IHC subsidiary Q Holding saw its net income fall 30.2% y-o-y to AED 574 mn during 2023, according to the investment company’s earnings release (pdf). The company witnessed a 38% y-o-y surge in its top line to AED 994 mn, and recorded a 9% y-o-y increase in total assets reaching AED 21.31 bn.
