11.59 PM Monday, 22 July 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:14 05:38 12:28 15:52 19:12 20:36
22 July 2024

ADCB records Dh4.927bn net profit in 2015

By Wam

Abu Dhabi Commercial Bank (ADCB) on Sunday posted a 17 per cent rise in fourth-quarter net profit.

The bank made a net profit attributable to shareholders of Dh1.19 billion in the three months to December 31, compared to Dh1.02bn in the corresponding period of the previous year, it said in a bourse statement.

ADCB also proposed to pay out a cash dividend of 45 fils per share for 2015, or a total of Dh2.3392bn (excluding treasury shares) equivalent to 47 per cent of net profit.

In 2015, ADCB made a net profit of Dh4.92bn, up 22 per cent on 2014, it said in the statement.

Eissa Mohammed Al Suwaidi, Chairman, ADCB, said, "2015 was another record year for the bank and our ability to produce such accomplishments in an environment buffeted by lower oil prices and other economic headwinds reflects our differentiation. This ‘ADCB difference’ is supported by a well-defined and well-executed strategy that we have pursued consistently over the past five years, which enabled us to deliver significant growth and rising profitability. While 2016 is expected to be a more challenging year for financial services globally, the bank will continue to monitor conditions closely and will take action as necessary.

Commenting on the bank’s performance, Ala’a Eraiqat, Member of the Board and Group Chief Executive Officer, said, "We continue to deliver strong results and all of our businesses have made a significant contribution to the bottom line, setting records in many key measures. As of December 31, 2015, total assets reached a record of Dh228bn, up 12 per cent from the prior year. Net profit in 2015 also set a record, rising 17 per cent year on year to Dh4.927bn, whilst net profit attributable to equity shareholders grew 22 per cent year on year to Dh4.924bn. Fee income was up 16 per cent over the prior year at Dh1.438bn, reflection of our increased emphasis on non-interest income generation. Our return on average equity for the year was an industry leading 20.3 per cent. Our margins in 2015 were slightly higher year on year, mainly as a result of our diversified asset base and granular build to our balance sheet."

"A strong balance sheet is a vital defence against economic turbulence, and another differentiator for ADCB.  We have built a robust capital structure, with a capital adequacy ratio of 19.76 per cent and tier I ratio of 16.29 per cent as at December 31, 2015. We run a stable and resilient business and strive to create a sustainable liability structure supported by stable and cost-effective CASA (current and savings account) deposits. Our CASA deposits comprised 44 per cent of total customer deposits as on December 31, 2015. Our funding approach remains disciplined with any future growth funded by an increase in customer deposits. Year on year, total customer deposits grew 14 per cent and loans grew 9 per cent. Islamic Banking continued to be a key driver of growth, with Islamic financing assets up 32 per cent and Islamic deposits up nine per cent over 2014. We remain selective about the sectors to which we lend and remain prudent about our provisioning.  As on December 31, 2015, our provision coverage ratio was 128.5 per cent," added Eraiqat.