Abu Dhabi Commercial Bank Credit Rating

Improving operating environment will support higher profitability. Abu Dhabi Commercial Bank PJSC’s (ADCB’s) profitability bounced back to near its pre-pandemic level in 2021, thanks to the improving economic environment in the United Arab Emirates (UAE) and central bank support measures. ADCB’s return on average equity (RoAE) improved to 11.3% in the first-quarter of 2022, compared with 7.6% in 2020. Amid the more supportive economic environment in 2022-2023, we expect ADCB’s profitability to stabilize or slightly improve. In addition, we believe the overall impact of increasing interest rates will be positive for the bank’s profitability.