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Abu Dhabi Commercial Bank - Egypt achieves 14% net profit growth in 2020 - Daily News Egypt

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Abu Dhabi Commercial Bank – Egypt achieves 14% net profit growth in 2020

Bank eyes continued expansion in Egyptian market, targeting 25% growth rate by 2021 end


The Abu Dhabi Commercial Bank (ADCB) – Egypt has reported that it achieved a 14% growth in its net profits at the end of 2020. It added that it had achieved unprecedented growth in its business results indicators during the year.

The significant growth came despite the economic challenges caused by the novel coronavirus (COVID-19) pandemic, which had a direct impact on the local and global volume of economic activity.

In a statement, the bank said that the change in its brand had contributed greatly to its performance during the year. The group enjoys strong financial solvency and ranks third among banks working in the UAE market, and fifth in the Gulf Cooperation Council (GCC) countries.

ADCB said that its total assets increased by 16% to EGP 34bn by the end of December 2020. The growth coincides with the bank’s expansion policy in the Egyptian market, which it has pursued since the change of trademark in September.

The customer deposits portfolio recorded about EGP 29bn by the end of 2020, up by 14%, and total loans and facilities to customers increased to EGP 17bn in the same period, reflecting growth of 32%.

This came despite the slowdown in economic activity affected by the closures and other precautionary measures that were put in place by the Egyptian Government, as part of efforts to curb the pandemic’s spread.

According to the bank, the portfolio of corporate and small enterprises financing and securitisation bonds contributed to the growth of its total credit portfolio. Corporate financing increased by EGP 3.6bn to EGP 12bn at the end of 2020.

ADCB aims to continue expanding in the Egyptian market, by achieving growth rates of up to 25% by the end of 2021. It projects that it will exceed the average growth rates estimated to be 15%-20% in the banking sector.

The bank’s strategy during the coming period is largely based on expansions in electronic banking services and products, especially as the Abu Dhabi Commercial Group is distinguished in this regard.

It has won several important awards in the field of digital products through its provision of a variety of services. This in turn gives its customers a distinct and unique banking experience, most saliently Internet banking and the bank’s electronic wallet features, as well as other banking services that keep pace with the latest banking industry developments.

The bank also aims to continue financing major and economically feasible investment projects in the interests of the national economy. This comes alongside providing job opportunities, and contributing to economic and societal development.

It is studying several funding projects varying between direct financing and joint loans, with values ​​ranging between EGP 2bn-EGP 3bn. The projects are in a number of vital sectors of the Egyptian economy, most notably industry, contracting, gas and petroleum, pharmaceuticals, in addition to the service sector.

ADBC recently signed joint financing contracts with the Arab Company for Projects and Urban Development, a subsidiary of Talaat Moustafa Group (TMG), with the participation of other banks. The aim is to finance the establishment and development of TMG’s Celia project in the New Administrative Capital (NAC).

With regard to its social responsibility activity in 2020, ADCB undertook a number of activities, most notably participating in the symposium organised by the University Center for Professional Development at Alexandria University’s Faculty of Commerce.

The symposium, entitled “Graduate skills required in the Egyptian labor market”, took place with the participation of business owners and entrepreneurs in Alexandria Governorate. The symposium discussed the impacts of COVID-19 on the labour market, and the changes that have occurred in the field of employment for university graduates.

The bank has also held a number of events with the participation of people with will, as the bank pays great attention to empowering them, and integrating them financially. It also looks to ensure that their needs are met through banking services and products that specifically meet their requirements.

This is part of the bank’s efforts to achieve sustainable development and growth in the Egyptian society, in addition to donating EGP 10m to the Tahya Misr (Long live Egypt) fund for those affected by the coronavirus crisis.

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https://dailyfeed.dailynewsegypt.com/2021/01/23/abu-dhabi-commercial-bank-egypt-achieves-14-net-profit-growth-in-2020/
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