ADCB Q3 profit drops 3% at Dh1.36 billion
Registered users on the bank’s mobile and internet banking increased by 18 per cent over last year to approximately 800,000 customers.
Abu Dhabi Commercial Bank (ADCB) on Wednesday said its third-quarter net profit fell three per cent to Dh1.366 billion as compared to same period last year.
The bank reported 9-month net profit of Dh2.802 billion compared to Dh4.196 billion in the previous year, down by 33 per cent. Its operating income reached Dh2.991 billion while non-interest income totalled Dh706 million, with net fee and commission income up 21 per cent, partially offsetting a three per cent sequential decline in net interest income due to lower volumes amid subdued macro-economic conditions.
Ala’a Eraiqat, group CEO, said a marked development in recent months has been the popularity of the digital platforms, with the rate of adoption by customers increasing substantially, even as lockdown measures in the UAE were eased.
“Registered users on the bank’s mobile and internet banking increased by 18 per cent over last year to approximately 800,000 customers,” he said. Under the UAE Central Bank’s Targeted Economic Support Scheme, it extended a cumulative total of Dh9.962 billion of support to over 67,000 individuals and businesses from inception through to the end of September 2020.
“We are pleased that the bank has received Dh2.24 billion of repayments, resulting in outstanding deferrals reducing to Dh7.7 billion as at September 30, 2020,” he said.
Deepak Khullar, group CFO of ADCB, said third-quarter results reflect this resilience as the loan book has held firm despite the challenges of the Covid-19 pandemic.
“The bank has maintained a clear focus on reducing its cost base. This approach has been anchored in a rigorous plan to capture merger synergies, which has been complemented by further efficiency initiatives this year. The cost to income ratio, excluding integration costs, has improved 335 basis points year on year to 34.3 per cent for the nine-month period,” he said.
Khullar added that the bank continues to take a conservative approach to provisioning to reflect the prevailing macro-economic conditions. Gross impairment charges on loans and advances in the third quarter were up 18 per cent sequentially.
Gross impairment charges on loans and advances were Dh913 million in Q3 2020, 18 per cent higher sequentially. Net impairment charges were Dh504 million. The bank recorded an additional Dh148 million of impairment charges related to NMC Health Group, Finablr and associated companies in Q3 2020, bringing the cumulative total to Dh1.379 billion.
ADCB continues to work closely with the joint administrators of NMC Health Group to ensure repayment of debt. — firstname.lastname@example.org
Swvl’s gross revenues and markets have grown rapidly, with more ... READ MORE
Bank of Sharjah has announced its results of the period ended June 30,... READ MORE
Investor interest in Aljada and Masaar communities continues to... READ MORE
Ajman Bank and Commercial Bank of Dubai (CBD) have successfully... READ MORE
Dubai will remain a platform for all ambitious Arab youth, the UAE... READ MORE
Several private hospitals in Dubai have started offering first and... READ MORE
More than 65 million PCR tests have been conducted across the country ... READ MORE
Passengers who have connected through these countries in the last 14... READ MORE