Abu Dhabi Commercial Bank (ADCB) and Australia-based Macquarie Bank will support strategic development projects in Abu Dhabi through their $2 billion (Dh7.3bn) infrastructure development fund, ADCB Chief Executive Officer said.
Eirvin Knox said both sides will support projects in the emirate, including in Abu Dhabi Industrial City Three and a liquid industrial waste treatment plant.
The UAE Central Bank has approved the establishment of the fund with an initial capital of $2bn. Knox said transparency is critical to ADCB.
All transactions are made clear to customers and the public, he said, adding that the bank recorded Dh2.08bn in profits in 2007.
Operational profits increased last year to Dh3.5bn, up by 37 per cent in comparison with 2006. Bank deposits, which rose by Dh13bn to Dh56.3bn, witnessed an increase of 30 per cent, the highest among UAE banks, he said. Loans went up during the same period from Dh13.2bn to Dh75.7bn. Also, the rate of liquidity available for businesses increased by 20.6 per cent by end of 2007 compared with 15 per cent a year before. Knox highlighted efforts made to bring down bad debts to Dh1.06bn, or the equivalent of 1.38 per cent of loans.
Also, the reserve allocated for bad debts increased by 107 per cent.
Last year, ADCB won several awards in appreciation for distinguished achievements, he added. The awards included “Best Bank of the UAE” from CEO Middle East, an “Elite Quality” award from JP Morgan Chase and a ship finance award from Seatrade Middle East.
Knox said the bank aims to achieve its vision by supporting the UAE’s economy by financing new projects across the country and in Abu Dhabi in particular. Currently, ADCB has the second largest deposits base in the UAE, with Dh106.2bn as of December 31, 2007, he added.
The Abu Dhabi Government, represented by the Abu Dhabi Investment Council, owns 65 per cent of the total paid-up capital of the bank, while the rest is owned by several national institutions, UAE nationals and others. At the end of last year, the market capitalisation value of the bank increased to Dh25.7bn.
ADCB and Macquarie to fund projects