ADCB Q1 profit more than doubles

Abu Dhabi Commercial Bank (ADCB) on Tuesday said its quarterly profit more than doubled, helped by lower loan provisions and a rise in non-interest income, beating analysts expectations.

The lender said first-quarter net profit rose to Dh583 million ($158.8 million), compared with Dh225 million in the year-earlier period.

Analysts polled by Reuters on average forecast a net profit of Dh393.75 million.

ADCB, which is planning to sell its 25-per cent stake in Malaysian bank RHB Capital, set aside Dh399 million to meet loan losses during the quarter, a 41 per cent drop compared with Dh681 million year-ago.

The bank's net interest and Islamic financing income grew six per cent to Dh926 million in the first-quarter, while non-interest income rose 22 per cent to Dh484 million.

Including exposure to Dubai World, non-performing loans (NPL) ratio stood at 10.3 per cent, the bank said in a statement.

ADCB has hired Goldman Sachs and BOA-Merrill Lynch as advisors for its $1.4 billion stake sale in RHB Capital, its chief executive said earlier in the month.

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