UAE's ADCB reports Q3 profit slip, more NMC-related impairments

ADCB reported a net profit of $372mln in the quarter ended September 30

  
Image used for illustrative purposes only. Investors looks at stock exchange information at the Dubai Financial Market .

Image used for illustrative purposes only. Investors looks at stock exchange information at the Dubai Financial Market .

REUTERS/Mosab Omar

DUBAI- Abu Dhabi Commercial Bank (ADCB) posted a 3% drop in third-quarter profit on Wednesday as the UAE's third-biggest lender took additional impairments on its exposure to hospital operator NMC Health and associated companies.

ADCB reported a net profit of 1.366 billion dirhams ($372 million) in the quarter ended September 30, down from 1.412 billion.

It reported 148 million dirhams in impairment charges related to troubled NMC Health, Finablr and associated firms.

That brings such impairment charges to 1.38 billion dirhams.

With exposure of about $981 million, ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.

The bank had an exposure of $182 million to payments group Finablr, whose majority shareholder, Indian businessman BR Shetty, founded NMC.

"ADCB continues to work closely with the joint administrators of NMC Health Group to ensure repayment of debt," the bank said.

($1 = 3.6728 UAE dirham)

(Reporting by Saeed Azhar; editing by Jason Neely) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

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