Abu Dhabi Commercial Bank outlines plan to double profit to $5.4bn in 5 years
Abu Dhabi Commercial Bank (ADCB) has announced a new commercial strategy as it plans to double net profit to AED20bn ($5.4bn) within the next five years.
On the year of its 40th anniversary, Abu Dhabi Commercial Bank has embarked on a visionary growth strategy, aligning with the UAE's progressive economic trajectory and contributing to the country's position as a leading global financial powerhouse.
The strategy charts a clear blueprint to align with the country's ambitions through a substantial increase in scale and reach.
Abu Dhabi Commercial Bank growth strategy
Setting out the Bank's headline targets under the new strategy, Ala'a Eraiqat, ADCB Group Chief Executive Officer, said: 'ADCB has come a long way since 2020 under the stewardship of its Board. As the bank continues on this journey, and in order to match the scale of the UAE's ambition, it is expanding rapidly and setting clear and accountable objectives to create significant value for the shareholders.
'Through sustained high velocity of growth, ADCB aims to achieve the following targets, rewarding investors through both growth and income:
Doubling net profit to AED20bn ($5.4bn) within the next five years, while aiming to achieve an annual growth rate of circa 20 per cent
Increasing year-on-year paid-out dividends over the same period, whereby ADCB aims to increase its total targeted dividend payout to approximately AED25bn ($6.8bn) over the next five-years, up 50 per cent compared to the total dividend payout in the preceding five-year period
Delivering annual Return on Equity exceeding 15 per cent each year, while maintaining healthy regulatory ratios and an adequate capital position to fuel future growth
'A detailed strategy blueprint has been approved by the Board, laying out a clear way forward on how to achieve this ambition.
'As a progressive financial institution, ADCB will accelerate deployment of digital and AI technology to elevate customer experience, enhance risk management and boost productivity while empowering UAE nationals to lead the transformation of the banking industry.'
Abu Dhabi Commercial Bank has delivered a total cumulative shareholder return of 75 per cent since 2020. For the 2024 financial year, the Board has recommended a cash dividend of AED0.59 per share, translating to a dividend yield of 5.7 per cent, based on ADCB's closing share price as of 31 December 2024.
Khaldoon Khalifa Al Mubarak, Chairman of Abu Dhabi Commercial Bank's Board of Directors, said: 'The Board of Directors has endorsed ADCB's ambitious strategy expressing their confidence in its successful implementation.
'ADCB's management team, with the Board's active and constructive oversight, has a proven track record as demonstrated by the fulfilment of the previous strategy well ahead of its projected timeframe.
'The Bank's ambition continues to be forward looking, and attuned to the pace and promise of the Nation's next phase of economic transformation. Our focus on rewarding the shareholders remains integral to our new strategy, ensuring that ADCB creates enduring value for all who place their trust in us.'
Abu Dhabi Commercial Bank is a trusted and pivotal financial partner in the UAE's reimagined future as the country targets AED335bn ($91.2bn) in additional growth from AI transformation and AED1.3tn ($354bn) in foreign direct investment by 2031, while tripling its investment in clean and renewable energy by 2030.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
15 hours ago
- Zawya
Saudi Arabia's first-quarter GDP grows by 3.4%, beating flash estimates
Saudi Arabia's economy grew by more than expected in the first quarter of 2025, according to government data estimates, with lower oil prices impacting the economy less than previously forecast. First-quarter GDP grew by 3.4% compared to the same quarter of the previous year, beating flash estimates of 2.7% released in May by the Saudi General Authority for Statistics. "The upward revision was both due to a smaller annual contraction from the oil sector and stronger private sector growth," said Monica Malik, chief economist at Abu Dhabi Commercial Bank. Oil GDP shrank by 0.5%, while initial flash estimates had shown it contracting by 1.4%. Non-oil growth reached 4.9% compared to estimates last month pointing to a 4.2% increase. The impact of lower oil prices may have been blunted by the kingdom's increase of oil output. The kingdom faces a widening budget deficit with the International Monetary Fund saying Riyadh needs a price of oil of over $90 per barrel to balance its books compared to prices of around $60 per barrel in recent weeks. Saudi Arabia, the world's biggest oil exporter, lowered its July prices for Asian buyers at the beginning of June, after Organization of the Petroleum Exporting Countries and allies, known as OPEC+, hiked output for a fourth month. OPEC+ agreed to another big output increase of 411,000 bpd for July, having increased output by the same amount in May and June. Saudi Arabia is in the midst of a costly economic transformation program known as Vision 2030 that aims to wean the economy off oil dependency and has been funneling billions into massive new development projects. Saudi Finance Minister Mohammed Al-Jadaan said the kingdom would "take stock" of its spending priorities in response to a significant decline in oil revenue, the Financial Times reported in May. "We also expect to see some pullback in government spending to limit the widening of the fiscal deficit, which will likely weigh on non-oil growth," said Malik. Daniel Richards, senior economist at Emirates NBD, said that still, the bank believes that spending will remain high. "There is still sufficient project spending already in progress that growth will remain supported through this year and next at least," he wrote in a note. Saudi Arabia is committed to hosting several large international events, each of which require significant spending on construction and development. These include the 2029 Asian Winter Games, set to feature artificial snow and a man-made freshwater lake, and the 2034 World Cup, for which 11 new stadiums will be built and others renovated. Saudi Arabia's 2025 fiscal deficit is forecast at around 101 billion riyals ($27 billion). (Reporting by Pesha Magid; Editing by Toby Chopra)
Campaign ME
20 hours ago
- Campaign ME
WPP CEO Mark Read to step down after 30 years with the company
The Board of NYSE-listed global advertising agency WPP has revealed the Chief Executive Officer Mark Read, will retire from the Board and as CEO on 31 December 2025 after more than 30 years with the company, which includes seven years as the CEO. Read has decided that the time is right for him to hand over to a new leader and the search for a successor is underway. Philip Jansen, Chair of WPP, said, 'On behalf of the Board, I would like to thank Mark for his contributions not only as CEO but throughout his more than 30 years of leadership and service to the Company. During that time Mark has played a central role in transforming the Company into a world leader in modern marketing services, with deep AI, data and technology capabilities, global presence and unrivalled creative talent, setting WPP up well for longer-term success.' Jansen added, 'We are pleased that Mark will continue to lead WPP as CEO until the end of the year, remaining focused on the execution of the Company's growth strategy and supporting a smooth transition to his successor, once appointed.' As the CEO, Mark Read led the company, which employs more than 100,000 talents and creatives, servicing clients and partners around the world. Commenting on his decision to retire, Mark Read, Chief Executive Officer of WPP, said, 'It has been an immense privilege to serve as its CEO for the past seven years. When I took on this role our mission was to build a simpler, stronger business, and put structure and new energy behind our creativity and performance, powered by world-leading technology. I am proud that our teams across the business have delivered that exceptionally well. Our clients today rate us more highly than ever before, we now work with four of the world's five most valuable companies, and our revenues with our biggest clients have grown consistently.' Read added, 'Our business starts with creativity, and I was delighted for our teams that last year we were once again named Creative Company of the Year at Cannes Lions. We have also positioned WPP at the forefront of the industry with our investments in AI and, with the full launch of WPP Open this year, we are now leading the way as AI transforms marketing. We have an exceptional leadership team and a secure financial position that allows us to face the future confidently and capture the opportunities ahead.' 'After seven years in the role, and with the foundations in place for WPP's continued success, I feel it is the right time to hand over the leadership of this amazing company. I am excited to explore the next chapter in my life and can only thank all the brilliant people I have been lucky enough to work with over the last 30 years, and who have made possible the enormous progress we have achieved together. I would also like to thank Phil and the rest of the Board for their steadfast support for me and the wider executive team, and I look forward to supporting them in the transition to my successor in the coming months,' he concluded.
Gulf Today
a day ago
- Gulf Today
Sharjah Chamber to honour Sharjah Excellence Award winners on June 25
The Sharjah Excellence Award (SEA)'s Board of Trustees has announced that the closing ceremony to honour the winners of the award's 2024 edition will take place on 25th June. The award is organised by the Sharjah Chamber of Commerce and Industry (SCCI) under the patronage of H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah. The board also commended the notable growth in participation for this year's edition of the award. The announcement was made during the regular meeting of SEA's Board of Trustees, chaired by Abdallah Sultan Al Owais, Chairman of SCCI and Chairman of the Board of Trustees of the Sharjah Excellence Award. The meeting was attended by Hamad Ali Al Mahmoud, Chairman of the Sharjah Economic Development Department (SEDD); Khalid Jasim Al Midfa, Chairman of the Sharjah Commerce and Tourism Development Authority (SCTDA); Waleed AbdelRahman BuKhatir, Second Vice Chairman of SCCI; Mohamed Ahmed Mohamed Al Shehhi, SCCI's Board Member; Najla Ahmed Al Midfa, Vice Chairperson of the Sharjah Entrepreneurship Centre (Sheraa); Mohammad Ahmed Amin Al-Awadi, Director-General of SCCI; Dr. Salah Taher Al Haj, Deputy Chancellor of the University of Sharjah for Community Affairs; and Lalu Samuel, Managing Director of Pierlite Middle East Sharjah. During the meeting, SEA's Board of Trustees approved an extension of the registration deadline for the award's 2025 edition to 31st January 2026. Discussions included key proposals, most notably the potential launch of a new category titled 'Best Service Entity'. The Board also underscored the importance of collaboration and knowledge exchange with prominent excellence awards across the UAE. Abdallah Sultan Al Owais opened the meeting by welcoming the attendees and praising the efforts and achievements of the Sharjah Excellence Award's team. He affirmed the Sharjah Chamber's ongoing commitment to enhancing the award's impact as a strategic platform for promoting excellence and innovation across the business sector. This initiative aligns with Sharjah's integrated development strategy, which prioritises quality, innovation, and institutional excellence in building a competitive and sustainable knowledge-based economy. Al Owais further underlined the award's role as a catalyst for advancing corporate performance standards and actively contributing to the ambitious development path of Sharjah and the UAE. Nada Al-Hajri, General Coordinator of the Sharjah Excellence Award, stated that the meeting produced key outcomes that will define the award's upcoming phase. Among them is the decision to extend the registration deadline for the next cycle to 31st January, 2026, allowing greater participation from private sector institutions. SEA's Board of Trustees also recommended evaluating the introduction of a new category under the title 'Sharjah Award for Best Service Entity'. Al-Hajri further noted that the meeting discussed several development proposals aimed at enhancing the award's appeal and expanding its outreach impact, including a suggestion to allow participation from companies operating across all emirates of the UAE. WAM
