Bloomberg News

Abu Dhabi’s ADCB First-Quarter Net Rises 38%, Tops Estimates

April 24, 2012

Abu Dhabi Commercial Bank (ADCB), the United Arab Emirates’ third-biggest lender, posted a 38 percent increase in first-quarter profit as impairment provisions declined and net interest income grew.

Net income advanced to 802 million dirhams ($218 million) from 583 million dirhams a year earlier, the lender said in a statement today. That beat the 612 million-dirham median estimate of three analysts surveyed by Bloomberg. Net interest income and Islamic financing revenue rose 29 percent to 1.2 billion dirhams.

U.A.E. banks are recovering after the global financial crisis slowed lending, hurt investment banking and led to an increase in bad loans. National Bank of Abu Dhabi PJSC (NBAD), the U.A.E.’s second-biggest bank by assets, today posted a 12 percent increase in first-quarter profit, while First Gulf Bank PJSC (FGB), a lender owned by Abu Dhabi’s ruling family, reported yesterday a 7 percent rise in profit to 935 million dirhams.

Net impairment allowance charges dropped 28 percent to 287 million dirhams from 399 million dirhams a year earlier, ADCB said in the statement. The ratio of non-performing loans to gross loans increased to 5.5 percent at the end of March from 4.6 percent at the end of December.

Gross lending slipped 1 percent to 129.8 billion dirhams in March from 130.5 billion dirhams in December, while deposits rose 4 percent to 114.5 billion dirhams, it said.

Moody’s Investors Service Inc. today changed ADCB’s outlook to stable from negative to reflect “continued improvement in the bank’s financial fundamentals since 2009” and its improved funding profile.

The shares stock fell 1 percent to 3.13 dirhams yesterday and have risen 13 percent this year.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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