ADCB profits jump on higher interest income

dubai - Islamic financing income also helped increase bank's 2017 net profit

Abu Dhabi Commercial Bank (ADCB) on Sunday said its 2017 net profit rose 3 per cent to Dh4.278 billion, thanks to higher net interest and Islamic financing income.

The bank's fourth-quarter profit jumped 7 per cent to Dh1.97 billion.

ADCB's board has proposed a dividend of 42 per cent of the bank's capital for 2017, compared to 40 per cent in 2016.

Sico Bahrain and EFG Hermes had forecast a fourth quarter profit of Dh942.5 million and Dh1.17 billion, respectively.

Operating income increased 5 per cent to Dh8.89 billion while operating profit before impairment grew 4 per cent to Dh5.94 billion for the whole year. Operating income grew 6 per cent to Dh2.3 billion during the fourth quarter.

Net interest and Islamic financing income grew 8 per cent to Dh6.7 billion year on year. In Q4, net interest and Islamic financing income grew 9 per cent to Dh1.7 billion.

Its non-performing loans (NPLs) were Dh3.7 billion at the end of 2017 as compared to Dh4.6 billion in the previous year, a decrease of 20 per cent year on year. As of December 31, 2017, the bank's collective impairment allowance balance was Dh3.17 billion and individuals impairment allowance balance was Dh2.86 billion.

The bank's total assets were worth Dh265 billion and net loans were worth Dh163 billion.

ADCB remains well-capitalised with a capital adequacy ratio of 19.1 per cent.

- waheedabbas@khaleejtimes.com