Abu Dhabi Commercial Bank, UAE's third-biggest lender, beat expectations with a 12% rise in Q2-2022 net profit of AED1.58 billion ($430 million), boosted by higher net interest income and a drop in impairment allowance.

The net profit topped analysts' mean estimate of AED1.43 billion, according to data provider Refinitiv.

Operating income of AED3.49 billion was 11% higher YoY, the bank it said in a statement on ADX on Thursday.

Net interest income rose 11%  YoY to AED 2.57 billion while non-interest income grew 10% YoY to AED924 million.

The lender's strong performance came in the context of rising rates and strong economic fundamentals in the UAE, it said.

Impairment charges slipped to AED 655.4 million at the end of the current quarter compared with AED677.5 million in the year-ago period.

For H1-2022, net profit rose 21%  YoY to AED3.06 billion.

(Reporting by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@lseg.com