Jan 27 2012 |
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UAE: ADCB posts Dh3b profit on Malaysian stake sale
By Haseeb Haider ABU DHABI -- Abu Dhabi Commercial Bank , or ADCB , nation's third biggest lender by assets reported a massive increase in its net profit which jumped to Dh3.045 billion in 2011, from Dh391 million a year ago, on the back of earnings from the sale of its stakes in Malaysia's RHB Capital.Malaysian assets sale to an Abu Dhabi entity raised Dh1.3 billion in net earnings, while other factors that boosted profits included a record net interest and revenues from Islamic financing.
The bank earned a net profit of Dh514 million in the fourth quarter against a profit of Dh39 million, a year ago.
Operating income in the full year reached a record Dh6.069 billion, showing a strong growth of 21 per cent. Non-interest income reported an increase of five per cent year on year, reaching Dh1.382 billion.
The bank reported a record total net interest and Islamic financing income at Dh4.688 billion, an increase of 27 per cent compared to 2010.
Net interest margin reported an increase of 53 bps reaching 3.10 per cent compared to 2.57 per cent in 2010. Total assets grew three per cent Dh184 billion as at 31 December 2011.
Gross customer loans rose a bit slowly by one per cent year-on-year to Dh130 billion.
Total customer deposits improved four per cent year-on-year to Dh110 billion as at 31 December 2011. Eissa Al Suwaidi, chairman of ADCB announced a 20 per cent cash dividend in the light of record financial performance.
Ala'a Eraiqat, chief executive officer said his bank "significantly strengthened its capital position, improved liquidity levels and funding profile, enhanced risk management capabilities and operating efficiency."
The NPL ratio declined to 4.6 per cent from 11.1 per cent, excluding 5.8 per cent Dubai World exposure, as at 31 December 2010. In 2011, a loan of Dh6.749 billion has been transferred from impaired to performing category based on the performance of agreed renegotiated terms.
The net impairment allowance charge was 27 per cent year -on -year lower to Dh2.398 billion. Provisions for loans and advances were 27 per cent year-on-year lower at Dh2.082 billion.
Provisions for the funded and unfunded investment portfolios were also lowered 26 per cent at Dh315 million compared to Dh427 million a year ago. At year end, individual impairment balance stood at Dh3.653 billion.
© Khaleej Times 2012
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