Dh18.7 billion net profit for 10 banks listed in Abu Dhabi, with a growth of 13.2%

YOUSEF AL BUSTANJI (ABU DHABI)

The net profits of the banks listed on the Abu Dhabi Securities Exchange (ADX), which announced their semi-annual data until Sunday, increased by approximately Dh2.1 billion.

This marks an increase of 13.2 percent during the first half of 2024, reaching Dh18.7 billion compared to Dh16.6 billion in the first half of 2023, according to disclosed data.

The total assets of the ten banks, as monitored by Aletihad, have also increased.

The banks include First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of Sharjah, Sharjah Islamic Bank, National Bank of Ras Al Khaimah, National Bank of Fujairah, National Bank of Umm Al Quwain, United Arab Bank, and Commercial International Bank.

Their total assets grew by about Dh93 billion, equivalent to a growth of 4.2 percent during the first half of 2024, reaching Dh2.305 trillion by the end of June 2024, compared to Dh2.212 trillion by the end of December 2023.

These ten banks account for about 53 percent of the total assets of banks operating in the country (61 banks).

The statistical data provided by the Abu Dhabi Securities Exchange shows that the total market value of the ten banks listed on the market decreased by about Dh20 billion during the first half of 2024, reaching Dh277.1 billion by the end of June 2024 compared to Dh297 billion by the end of December 2023, a decrease of 6.7 percent.

According to the analysis of the financial data of the ten banks compared to their market value, the average annual return on investment in the shares of the ten banks increased to 13.5 percent by the end of June 2024, compared to 11.2 percent by the end of June 2023.

The data shows that the average price-to-earnings ratio for the ten banks reached 7.41 by the end of June 2024 on an annual basis, compared to a ratio of 8.9 by the end of June 2023.

According to this data, the average annual return on investment in the shares of the ten banks exceeds the basic bank interest rate on deposits by more than 150 percent during the same period.

The data also shows that the total market value of the ten banks reached Dh277 billion by the end of June 2024, which is close to the value of shareholders’ equity, which amounted to about Dh260 billion on the same date.

The ratio of market value to shareholders’ equity is only 1.06 percent.

As for the return on shareholders’ equity during the first six months of this year, it rose to 7.2 percent, compared to 6.3 percent in the first half of 2023.