Abu Dhabi Commercial Bank (ADCB) is in a strong position to repay its loans in full, according to a senior official.
The bank had a "comfortable" liquidity ratio of 15.3 per cent and an advances-to-stable-resources ratio of 91 per cent at the end of last year, said Dr Majdi Abd El Muhdi, Vice-President and Head of Corporate Communications, ADCB.
The bank's full-year financial results showed that on December 31, 2009, deposits and balances due from banks stood at Dh18.3 billion, cash with the UAE Central Bank stood at Dh4.1bn and liquid assets stood at Dh1.9bn. "With a total of Dh24.3bn in interbank placements and liquid assets, ADCB remains in a comfortable position to meet its repayments of Dh8.8bn in 2010," added Dr El Muhdi.
"ADCB continues to be a net lender in the interbank market and has increased its net placements from Dh10.6bn in 2008 to Dh13.6bn in 2009. ADCB has, and will continue to manage its liquidity in a prudent manner, governed by internally set best practices that are of international standard and stricter than regulatory guidelines. ADCB had Dh6bn of maturities in international capital markets which it very successfully refinanced in the first half of 2009 and the GMTN issue in October 2009 actually helped us to refinance part of our 2010 maturities," he said.
ADCB was well capitalised with a capital adequacy ratio of 17.4 per cent, which was substantially above the required level of 11 per cent (to be increased to 12 per cent in June 2010), and a strong Tier I ratio of 12.4 per cent, Al Muhdi added.