ADCB Q3 profit rises 16.4 per cent

Abu Dhabi Commercial Bank (ADCB) met analyst expectations as it reported a 16.4 per cent increase in third-quarter net profit on Wednesday, with a big reduction in impairment allowances helping to boost earnings.

The fourth-largest lender in the UAE by assets made a net profit attributable to equity holders of Dh1.02 billion ($277.7 million) in the three months to September 30, compared to Dh874.2 million in the corresponding period of last year, it said in a bourse filing.

The figure was in line with the forecast of six analysts polled by Reuters, with their average expectation for net profit in the period of Dh1.04 billion.

The third-quarter profit increase was mainly down to a 35 per cent year-on-year drop in impairments, which declined to Dh201 million.

Banks in the UAE have been setting aside less cash to cover bad loans in recent quarters. Year-on-year growth in third-quarter net interest income and non-interest income was modest, at two and three per cent, respectively.

Loans and advances edged up to Dh135.9 billion on September 30, up three per cent since the beginning of the year. Meanwhile, customer deposits increased five per cent over the same time period to Dh121.5 billion.

 

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