CBD, Adib and UNB report higher quarterly profits

Three UAE-based banks Commercial Bank of Dubai (CBD), Abu Dhabi Islamic Bank (Adib) and Union National Bank (UNB) today announced increase in their quarterly profits.

Commercial Bank of Dubai (CBD) net profit for the first half of 2015 increased five per cent from Dh581.1 million for the first half of 2014 to Dh609.8million for the same period of the current year.

 Operating profit increased by 6.5 per cent to Dh764.3 million, mainly due to an8.3 per cent increase in net interest income to Dh802.4 million (Dh741.2m in H1 2014) following balance sheet growth and a 22.2 per cent increase in non-interest income to Dh380.2 million with a significant increase in fees and commission (+34.3 per cent) as well as increase in foreign exchange income (+18.6 per cent).

Operating expenses increased by 25.1 per cent from Dh334.6 million in H1 2014 to Dh418.4 million in H1 2015.

Loans and advances of Dh37.9 billion as at 30 June 2015, registering an increase of 21.5 per cent over the Dh31.3 billion as at 30 June 2014 and were 18.2 per cent higher when compared to Dh32.1 billion as at 31 December 2014.

Loan book growth was driven by all business segments.

Personal banking gross loans were at Dh5.5 billion, a 43 per cent increase when compared to the Dh3.8 billion as at 30 June 2014.

Commercial banking gross loans were at Dh9.4 billion, a 19.7 per cent increase when compared to Dh7.8 billion last June.

Corporate gross loans of Dh25 billion were 12 per cent (Dh2.6 billion) higher compared to Dh22.3 billion as of June 14 of which Dh1.8 billion from the acquisition of Royal Bank of Scotland corporate portfolio in the UAE.

Customer deposits were Dh35.6 billion as at 30 June 2015, increased by 10.4 per cent compared to Dh32.3 billion as at 30 June 2014, and were 10.8 per cent higher when compared to Dh32.2 billion as at last year end.

Peter Baltussen, Chief Executive Officer of CBD, said: “In the first half of 2015, CBD has underwritten new loans of Dh11billion increasing its loans and advances at a significantly higher than market rate of growth. With an increasing contribution from personal banking and business banking to the bank's income, CBD is positioned to deliver a robust performance in the coming years".

Adib

Abu Dhabi Islamic Bank (Adib) on Wednesday posted a 10.5 per cent rise in second-quarter net profit, beating analysts' estimates.

The emirate's largest Shariah-complaint bank made a net profit of Dh502.6 million in the quarter ending June 30, 2015 compared to Dh454.8 million in the same period a year ago, it said in a statement.

Three analysts polled by Reuters earlier this month forecast an average net profit of 484.23 million dirhams.

Tirad Al Mahmoud, Chief Executive Officer of Adib, said: "We are firmly embracing digital technology and will soon be redefining our branches and augmenting our delivery systems to meet the developing needs of our customers. We are also launching an equity capital raising programme which follows a period of expansion for the bank and will support us as we continue on our strong growth trajectory."

Equity stood at Dh13.7 billion at the half year, an increase of 5.9 per cent year-on-year and a 3-year compounded growth rate of 16.8 per cent.

Given the 14.9 per cent year-on-year growth in net customer financing assets, including the acquisition of the Barclay's UAE Retail Banking business and the change introduced by the Central Bank of the UAE to the treatment of risk-weighted assets in mid-2014, ADIB's capital adequacy ratio under Basel II principles now stands at 14.01 per cent with the Basel II Tier 1 capital ratio at 13.47 per cent.

 UNB

Union National Bank 50 per cent owned by the Abu Dhabi government, on Wednesday posted a 10 per cent rise in second quarter net profit, slightly missing analysts' forecasts.

The fifth largest lender on the Abu Dhabi exchange by assets reported a net profit of Dh571 million ($155.48 million) in the three months to June 30, up from Dh520 million a year earlier, a bourse filing said.

In a separate filing, the company said it posted a net profit attributable to equity holders of Dh568 million, 10 per cent up from Dh515.6 million in the year earlier period.

Six analysts polled by Reuters earlier this month forecast an average attributable net profit of 587 million dirhams.

UNB, earlier this month, said it picked five banks to raise a $500 million, three-year syndicated loan.

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