DUBAI - Abu Dhabi Commercial Bank posted a 15% drop in second-quarter net profit due to higher impairment costs, including to cover its exposure to troubled hospital operator NMC Health, it said on Wednesday.

Net profit at the United Arab Emirates' third-largest bank fell to 1.23 billion dirhams ($334.9 million) from 1.45 billion a year earlier.

Impairment charges in the first half rose to 2.55 billion dirhams from 1.17 billion a year earlier.

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. 

In May ADCB reported an 84% fall in first-quarter net profit as it took impairments of $292 million on debt exposure to NMC Health and payments group Finablr.

Including an additional 159 million dirhams in the second quarter, total impairment allowances related to NMC Health, Finablr and associated companies had risen to 1.23 billion dirhams by the end of June, ADCB said on Wednesday.

"Impairment charges in the second quarter were significantly lower than in the first quarter of the year," Chief Executive Ala’a Eraiqat said.

"Given the current information on revenue generation, cash flows and asset values received from the joint administrators and our advisers, we believe the provisions of AED 1.231 billion taken to date for the NMC Health Group and Finablr are sufficient."

The bank said it continues to work with NMC's administrators to ensure debt repayment.

Sources told Reuters this week that ADCB is letting go hundreds of employees as pressure mounts on Gulf banks to cut costs amid lower oil prices and the coronavirus crisis. 

($1 = 3.6728 UAE dirham)

(Reporting by Davide Barbuscia; Editing by Jason Neely and Jan Harvey) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))