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29 March 2024

ADCB posts Dh1.34bn profit in Q2

Published
By Reuters

Abu Dhabi Commercial Bank (ADCB), the UAE's fourth largest lender by market capitalisation, swung to a second-quarter net profit on Tuesday as it booked a $357 million gain from the sale of its quarter-per cent stake in Malaysia's RHB Capital .

The lender, one of the region's most exposed banks to indebted conglomerate Dubai World, reported a net profit of Dh1.34 billion ($364.9 million) in the second quarter, compared with a loss of Dh531 million for the previous year, the bank said in a statement on Tuesday.

Analysts polled by Reuters had estimated an average second quarter profit of Dh1.31 billion for the bank.

In June, it sold its stake in Malaysian lender RHB to Abu Dhabi sovereign fund Aabar for 10.80 ringgit per share in a $1.91 billion deal.

The bank also said it would convene a shareholders meeting to buy back up to 10 per cent of its capital.

Net impairment allowances for the second-quarter stood at Dh935 million compared with Dh1.30 billion in the year earlier period. The bank took an additional impairment provision of Dh275 million for the first half, it said.

ADCB said loans fell five per cent to Dh123 billion in the second quarter of 2011 compared to a year ago, while deposits remained flat at Dh106.35 billion for the same period.

Operating income stood at Dh1.42 billion in the second quarter versus Dh1.12 billion a year ago, the statement said.

ADCB shares have risen 50 per cent year-to-date. They were halted pending the announcement of results on Tuesday.