ADCB earned 26% more this year

Abu Dhabi Commercial Bank reported net profit for the first nine months of 2013 at Dh 2.714 billion compared with Dh2.182 billion, an increase of 26 percent year-on-year.  Net profit for the quarter reached Dh 920 million compared with Dh626 million in Q3 2012, an increase of 47 per cent year on year.

Total operating income for the first nine months of 2013 was Dh5.556 billion, an increase of 10 percent year-on-year.  On a quarterly basis, total operating income in Q3 2013 was Dh1.821 billion, an increase of nine per cent over Q3 2012 primarily on account of higher non–interest income.

Total net interest and Islamic financing income for the first nine months of the year in 2013 was Dh4.086 billion, an increase of four per cent over first nine months of  2012 and on a quarterly basis, it was reported at Dh1.366 billion, an increase of two per cent.  Interest expense in first nine months of  2013 was 34 per cent lower year-on-year and on a quarterly basis (Q3 2013) 40 per cent lower over Q3 2012, which was mainly driven by increased CASA volumes and lower EIBOR. 

As at  September 30, 2013, CASA deposits comprised 42 per cent of total customer deposits, compared to 33 per cent as at  December 31, 2012.  Net interest margin in Q3 2013 was 3.44 per cent and cost of funds was reported at lowest level at 1.06 per cent.

Non-interest income for the first nine months of 2013 was at Dh1.470 billion, an increase of 33 percent over first nine months of 2012.  On a quarterly basis, at Dh454 million, non-interest income was up 37 per cent year-on-year.  Higher non-interest income was primarily attributed to the gains arising on retirement of financial liabilities and related hedges on the repayment of the Tier 2 loan and higher net trading income. 

Operating expenses totalled Dh1.674 billion in the first nine months of 2013, seven per cent higher compared to the corresponding period in 2012.  Cost to income ratio improved to 30.1 per cent in first nine months of 2013 compared with 30.9 per cent in 9M 2012, as increased top line momentum offset higher operating expenses.

Total assets were Dh175 billion, three per cent lower year to date, primarily on account of lower acceptances. Gross customer loans and advances as at September 30, 2013 declined by Dh2.6 billion (two per cent) compared to  December 31, 2012, primarily on account of a repayment of a loan of $ 2 billion in late September 2013.

Customer deposits were Dh112 billion, representing an increase of 3 per cent over 31 December 2012.

Commenting on the bank’s performance, Ala’a Eraiqat, member of the board and chief executive officer, said, "The bank has delivered strong financial results for the first nine month period of 2013, delivering double digit growth in operating income and net profit, reinforcing our position as a leading bank in the UAE."

Deepak Khullar, Group Chief Financial Officer, said, "The strong performance of the bank during the first nine months of 2013 demonstrates the strength of our franchise and network.  Net profit for the nine month period was 26 per cent higher and operating income was 10 per cent higher over the same period in the previous year."




 

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