ADCB enhances liquidity by Dh10.6bn

Liquidity in the Abu Dhabi Commercial Bank (ADCB) has been enhanced after it restored Dh10.6 billion that was deposited in foreign banks outside the UAE, bank's CEO Alaa Eraiqat said. The ADCB's financial situation is very firm and stable and it realised its goal last year through acquiring a 25 per cent stake at Malaysian bank RHB Capital Rehad, Eraiqat said during the bank's normal general assembly which was held yesterday. "We received our expected share of profits from the Malaysian bank and we do not care about the fall of the price of bank's share. Our investment in the bank aimed to realise a strategic goal, not to speculate. We appointed an international evaluation firm and we revised the bank's budget. Our expectations of the continuity of the bank's profitability proved to be right, as our profits last year exceeded our expectations and we expect more profits" he added. Eraiqat said the ADCB acquired its current share in the Malaysian bank through the issuance of bonds, which were bought by four institutions in Abu Dhabi, including Abu Dhabi Investment Authority and Mubadala. The bonds are convertible into shares during three years. "The bonds are set to be converted into shares and that will be done after two years." he said. He said the ADCB will follow a new policy this year to rationalise expenditure, but employees will not be laid off. "We will not lay off any employee. We Emiratised 31 per cent of jobs and we hope to generate more profits in current year." "Despite international financial crisis, the ADCB generated last year Dh4.42bn in revenues, an increase of 16 per cent compared to 2007. In addition, the revenues from treasury operations and financial derivatives rose by 100 per cent compared to last year to touch Dh410 million. Commissions and fees of main transactions grew by 12 per cent. The rate of bad debts compared to the total loans fell to 1.13 per cent and the percentage of coverage of bad debts was 158 per cent." "The net loans grew by 44 per cent last year to reach Dh108.8bn, compared to Dh75.7 billion in 2007. Some 50 per cent of last year's loans were given to Abu Dhabi-based companies, 22 per cent to Dubai-based companies, 12 per cent to individuals, eight per cent to government sector, four per cent to companies from other emirates and four per cent to companies from outside the UAE. "The bank will soon expand in the Islamic banking's services, which started in September." About the strategic plan over the next two years, he said: "We will attempt to raise the returns of shareholders and to be the bank No1 in the UAE in terms of profits and returns of the rights of shareholders. We prepared 26 initiatives covering all sectors to improve the level of client service and raise revenues. In 2008, we won nine local, Arab and international awards and we will continue in our distinguished march."