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29 March 2024

ADCB's Q2 net profit up 21% to Dh1.28bn

Abu Dhabi Commercial Bank (FILE)

Published
By Staff & Reuters

Abu Dhabi Commercial Bank on Tuesday posted a 21 per cent rise in second-quarter net profit, slightly beating analysts' forecasts.

The fourth largest lender by market value in the United Arab Emirates made a net profit attributable to shareholders of Dh1.28 billion ($349 million) in the three months to June 30, compared to Dh1.06 billion in the corresponding period of the previous year, it said in a statement.

Analysts polled by Reuters had forecast an average net profit of Dh1.18 billion.

For the first half of 2015, ADCB reported a net profit of Dh2.53 billion, 26 per cent up from the same period of 2014. 

Operating income increased 12 per cent to Dh4.234 billion while net interest income surged 14 per cent to Dh3.184bn and non-interest income up 7 per cent to Dh1.05bn.

Net fees and commission income in the first-half also rose 22 per cent to Dh718 million. Operating profit before impairment allowances rose 11 per cent to Dh2.862bn.

As at 30 June 2015, non-performing loans and provision coverage ratios were 3 per cent and 139 per cent respectively.

Net loans and advances increased 9 per cent to Dh146bn while deposits from customers increased 11 per cent to Dh132bn.

ADCB Chairman Eissa Mohamed Al Suwaidi said challenges have increased with the lower oil price, however UAE’s economic outlook remains positive supported by its diversified nature.

Ala’a Eraiqat, Chief Executive Officer, said: “We take a long-term perspective on growth... We continue to strengthen our customer centric culture and set high standards for performance as we invest in targeted growth opportunities and simplifying our businesses. Reducing complexity in our business remains core to our strategy, eliminating inefficiencies and reinvesting savings elsewhere in the business. Ongoing bank-wide cost management initiatives help us to maintain a cost to income ratio within our target range.

“Our funding approach is similarly disciplined, any future growth is funded through an increase in customer deposits, which supports our commitment to sustainable growth. Year on year, our loan book grew 9 per cent and customer deposits grew 11 per cent. In H1’15, over 80 per cent of our loan growth came from Consumer Banking, SME and mid corporate segments. Despite the challenging operating environment, we maintain a positive outlook situated to benefit from future growth opportunities in the UAE.”