Jul 24 2012
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Abu Dhabi Commercial Bank see Q2 net profit of Dh733 million
Tuesday, Jul 24, 2012
Abu Dhabi Commercial Bank ( ADCB ), one of the UAE’s largest lenders, said yesterday its fiscal second quarter net profit was Dh733 million while profit for the first half of 2012 stood at Dh1.54 billion.
The bank’s total operating income for the first half of the year was up 22 per cent at Dh3.35 billion, ADCB said in a statement. For the same period, operating profit before impairment allowances was at Dh2,311 million, up 31 per cent, while cost to income ratio improved to 31.0 per cent from 33.8 per cent.
The bank’s net impairment allowance charges for the first half of 2012 were at Dh779 million, 42 per cent lower.
ADCB said its loan to deposit ratio improved to 110.98 by end June from 114.27 per cent as of December 31, 2011.
Ala’a Eraiqat, ADCB’s chief executive officer, said: “We have made significant progress during the second quarter of 2012, reporting record revenues and operating profit for the quarter at Dh1,769 million and Dh1,232 million, representing an increase of 24 per cent and 43 per cent respectively, year on year. We remain focused on improving our operational efficiency.”
Eraiqat added: “Our disciplined approach to balance sheet and capital management resulted in improved loans to deposit ratio and tier I capital year to date and a strengthened funding profile. We have continued to gain widespread recognition for our leading market position in the UAE and for our regional leadership in corporate governance. We continue to take advantage of the improvements to build a stronger and more resilient ADCB in line with our strategy.”
ADCB , nearly 60 per cent owned by the Abu Dhabi government, saw a 34 per cent year-on-year growth in net income and Islamic financing income in the second quarter, with the Dh1.38 billion outstripping the Dh1.04 billion made in 2011.
ADCB’s lending growth will remain muted at 2-3 per cent in 2012 as the bank looks at deleveraging its balance sheet owing to the lack of lending opportunities and a focus on better quality loans, Bahraini investment bank SICO said in a research note published on June 21.
In a recent note affirming ADCB’s rating at A+, Fitch noted the high probability of support for the lender from UAE authorities if needed.
Shares in ADCB , which were unchanged yesterday at Dh3.38, have risen 21.6 per cent year-to-date outperforming the main Abu Dhabi index which is up 2.8 per cent.
(With agency inputs).
By Himendra Mohan Kumar Staff Reporter
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