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ADCB’s profit up 38% in
Q1 on higher revenues

Abu Dhabi Commercial Bank showed a substantial growth in net profit of 38 per cent year-on-year to Dh802 million in first three months of the year, as interest income registered a double-digit growth.

Total operating income reached Dh1.584 billion, an increase of 19 per cent over the same period in 2011 and reported a marginal decline of two per cent quarter-on-quarter.

Non-interest income reported a marginal decrease of three per cent over same period last year to Dh389 million, primarily attributed to lower fee and commission income which stood at Dh249 million compared to Dh263 million in the comparable period last year, registering a five per cent decline, whilst net trading income remained flat at Dh102 million year on year.

Quarter on quarter, non-interest income contribution to operating income reported a strong improvement, increasing from 14 per cent to 25 per cent. The second biggest lenders in Abu Dhabi by assets, the Bank reported a total net interest and Islamic financing income of Dh1.195 billion, which showed a growth of 29 per cent year on year. The strong growth recorded was mainly driven by the Bank’s improved funding profile as interest expenses reported an improvement of 26 per cent over Q1’11 and cost of funds reported an improvement of 69 bps at 2.00 per cent in the quarter.

Net interest margin for the quarter was 3.02 per cent compared to 2.52 per cent in Q1’11 and 3.60 per cent in the fourth quarter of last year.

Total assets aggregated to Dh182.914 billion as at 31 March 2012, representing a marginal decline compared to 31 December 2011 at Dh183.726 billion.

Gross customer loans as at 31 March 2012 were at Dh129.786 billion compared to Dh130.467 billion as at 31 December 2011.

Total customer deposits were up four per cent at Dh114.462 billion. The Non Performing Loan ratio was at 5.5 per cent and provision coverage ratio was 70.4 per cent compared to 4.6 per cent and 80.0 per cent respectively as at 31 December 2011.

Net impairment allowance charge for the first quarter was Dh287 million, 28 per cent lower compared to the same period a year ago and 48 per cent lower compared to the last quarter of 2011.

The third biggest lender by assets ADCB has 47 branches, four pay offices and one service centre in the UAE. Its overseas operations include two branches in India and one offshore branch in Jersey.
 — haseeb@khaleejtimes.com