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Abu Dhabi Commercial Bank has reported a 22% rise in Q3 2023 net profit to 1.94 billion ($528 million), boosted by higher net interest income.
The net profit was in line with analysts’ mean estimate of AED 1.96 billion, according to LSEG data.
Operating income of AED 4.23 billion was 21% higher year-on-year (YoY), the bank it said in a regulatory filing on ADX on Wednesday.
Net interest income rose 24% to AED 3.179 billion on broad based loan growth in a rising rate environment. Non-interest income rose 11% to AED 1.054.
Impairment charges for the quarter rose 29% to AED 819 million.
Meanwhile, nine-month net profit increased 24% to AED 5.752 billion.
The bank is targeting a 50% cash dividend payout on "this year's earnings supported by its robust capital position", said ADCB Group CFO Deepak Khullar.
ADCB is the third-largest bank in the UAE, with a broad domestic franchise, including market shares of about 15% of sector loans and deposits, and strong relations with the Abu Dhabi government, according to a recent note from Fitch ratings.
(Writing by Brinda Darasha; editing by Seban Scaria)
