ADCB Targets AED 20 Billion Net Profit in Five Years with New Strategy Aligned to UAE’s Growth

Environment

ADCB Targets AED 20 Billion Net Profit in Five Years with New Strategy Aligned to UAE’s Growth

Marking its 40th anniversary, Abu Dhabi Commercial Bank (ADCB) has unveiled a transformative growth strategy to align with the UAE’s dynamic economic evolution and establish itself as a global financial leader. The ambitious plan outlines a roadmap to expand scale and reach, mirroring the nation’s progressive aspirations.

Strategic Goals and Financial Targets
Under the new strategy, ADCB aims to double its net profit to AED 20 billion within five years, achieving an annual growth rate of approximately 20%. The strategy also includes:

Increased Dividends: Aiming for a total dividend payout of AED 25 billion over the next five years, a 50% increase compared to the previous five-year period.
Return on Equity: Targeting an annual Return on Equity exceeding 15% while maintaining robust regulatory ratios and sufficient capital to support growth.

Ala’a Eraiqat, ADCB Group CEO, stated:
“ADCB has achieved remarkable milestones under its Board’s leadership since 2020. As the UAE pursues transformative economic goals, ADCB is scaling its operations to match this ambition. Our strategy focuses on leveraging digital and AI technologies to enhance customer experience, risk management, and productivity, while empowering UAE nationals to lead the industry’s transformation.”

Record-Breaking Shareholder Returns
Since 2020, ADCB has delivered a cumulative shareholder return of 75%. For the 2024 financial year, the Board recommended a cash dividend of AED 0.59 per share, equating to a 5.7% dividend yield based on the December 31, 2024, closing share price.

H.E. Khaldoon Khalifa Al Mubarak, Chairman of ADCB’s Board, expressed confidence in the strategy:
“The Board fully endorses ADCB’s forward-looking approach. Building on the successful execution of previous strategies, the new plan reflects our commitment to creating enduring value for shareholders and supporting the UAE’s next phase of economic transformation.”

Empowering the UAE’s Economic Vision
ADCB’s strategy aligns with the UAE’s ambitious economic goals, which include generating AED 335 billion from AI transformation, attracting AED 1.3 trillion in foreign direct investment by 2031, and tripling investments in renewable energy by 2030.

This forward-thinking strategy cements ADCB’s role as a trusted financial partner in the UAE’s reimagined future, contributing significantly to national growth and innovation.