Abu Dhabi, 24th April 2012 (WAM) Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the first quarter of 2012.
Net profit and earnings per share: ADCB reported a net profit of AED 802 million in Q112, compared to AED 583 mn in Q111, an increase of 38% year on year and an increase of 56% quarter on quarter As at 31 March 2012, basic earnings per share were AED 0.12 compared to AED 0.09 reported as at 31 March 2011 and 31 December 2011 As at 31 March 2012, ROE was reported at 14.74% and ROAA at 1.49% compared to 12.34% and 1.08% respectively over the same period last year and 11.33% and 1.10% respectively as at 31 December 2011Operating income: Total operating income in the first quarter of 2012 reached AED 1,584 mn, an increase of 19% over the same period in 2011 and reported a marginal decline of 2% quarter on quarter At AED 389 mn, non-interest income reported a marginal decrease of 3% over Q111, primarily attributed to lower fee and commission income which stood at AED 249 mn compared to AED 263 mn in Q111, registering a 5% decline, whilst net trading income remained flat at AED 102 mn year on year Quarter on quarter, non-interest income contribution to operating income reported a strong improvement, increasing from 14% to 25% The Bank reported a total net interest and Islamic financing income of AED 1,195 mn, an increase of 29% compared to Q111 and 14% lower quarter on quarter. The strong growth recorded year on year was mainly driven by the Banks improved funding profile as interest expenses reported an improvement of 26% over Q111 and cost of funds reported an improvement of 69 bps at 2.00% in Q112 Net interest margin for Q112 was 3.02% compared to 2.52% in Q111 and 3.60% in Q411 Operating expenses and cost to income ratio: Operating expenses totaled AED 506 mn in Q112, 18% higher compared to Q111 and 8% lower compared to Q411 Cost to income ratio improved from 34% in Q411 to 32% in Q112. In Q112 whilst the percentage contribution of staff costs in relation to total operating expenses increased to 58% from 51% over Q411, the percentage contribution of general administration expenses to total expenses declined from 40% in Q411 to 34% in Q112Asset quality: As at 31 March 2012, the NPL ratio was at 5.5% and provision coverage ratio was 70.4% compared to 4.6% and 80.0% respectively as at 31 December 2011 Net impairment allowance charge for the first quarter was AED 287 mn, 28% lower compared to Q111 and 48% lower compared to Q411. Charges for impairment allowance on loans and advances, net of recoveries amounted to AED 287 mn in Q112 compared to AED 325 mn in Q111 and AED 476 mn in Q411, representing a 12% decline year on year and a 40% decline quarter on quarter. Provisions for the funded and unfunded investment portfolios totaled a net writeback of AED 1 mn in Q112, compared to provision charged AED 74 mn in Q111 and Q411 Portfolio impairment allowance balance was AED 2,073 mn and 1.61% of credit risk weighted assets as at 31 March 2012. UAE Central Bank directive requires banks to increase the level of collective provisions to 1.50% of credit risk weighted assets by 2014. Individual impairment balance stood at AED 3,847 mn as at 31 March 2012 As at 31 March 2012 exposure to investments in CDS were reported at AED 55 mn, unchanged from 31 December 2011 Cost of risk reported an improvement of 95 bps at 0.82% for the quarter compared to 1.77% for full year 2011Customer deposits: As at 31 March 2012, total customer deposits were at AED 114,462 mn, representing an increase of 4% over 31 December 2011 Loan to deposit ratio was reported at lowest level at 108.22% compared to 135.12% as at 31 December 2009, an improvement of 2,690 bps and reported an improvement of 531 bps over 31 December 2011Advances to stable resources ratio as defined by the UAE Central Bank was also reported at lowest level at 85% compared to 92% as at 31 December 2011 and well below the 100% maximum level set by the Central Bank. Capital and liquidity; As at 31 March 2012, the Banks capital adequacy ratio was 23.19% compared to 22.51% as at 31 December 2011 and above the minimum requirement of 12% determined by the Central Bank As at 31 March 2012, the Banks Tier I ratio stood at 16.62% compared to 15.90% as at 31 December 2011, above the minimum requirement of 8% determined by the Central Bank As at 31 March 2012, the Banks liquidity ratio was 21.58% compared to 22.13% as at 31 December 2011Copyright Emirates News Agency (WAM) 2012.
