ADCB records Dh3.15b earnings

ADCB records Dh3.15b earnings
ADCB' s total assets grew 12 per cent to Dh255 billion and net loans and advances to customers increased 10 per cent to Dh162 billion over 31 December 2015.

By Haseeb Haider

Published: Sun 23 Oct 2016, 6:44 PM

Last updated: Sun 23 Oct 2016, 11:36 PM

Abu Dhabi Commercial Bank or ADCB, reported 17 per cent drop in earning in third-quarter ended 30 September.
The lender made a net profit attributable to shareholders of Dh999.1 million in the three months to September 30, compared to Dh1.20 billion in the same period a year ago, according to a financial statement issued Sunday.
The net profit of Dh3.153 billion during the 9-month period was 16 per cent lower impacted by higher impairment allowances.
Operating income of Dh6.324 billion was up one per cent, in the January-September period, while total net interest income grew two per cent year-on-year to Dh4.628 billion, impacted by higher funding costs. This was partially offset by higher non-interest income of Dh1.697 billion, up 12 per cent, driven by the bank's continued focus on diversifying revenues.
Interest income grew 10 per cent year-on-year to Dh6.423 billion, while income from Islamic financing jumped 23 per cent to Dh609 million. Net fee income of Dh1.092 billion was up four per cent, mainly attributable to "a healthy increase in retail banking fees" at Dh523 million that went up by 15 per cent year-on-year.
As at 30 September 2016, NPL and provision coverage ratios were 2.6 per cent and 133.1 per cent respectively, compared to NPL ratio of 3.0 per cent and provision coverage ratio of 128.5 per cent as at 31 December 2015.
Total assets grew 12 per cent to Dh255 billion and net loans and advances to customers increased 10 per cent to Dh162 billion over 31 December 2015. Deposits from customers increased seven per cent to Dh153 billion over 31 December 2015. Low cost current and savings account (CASA) deposits comprised 42.2 per cent of total customer deposits
Ala'a Eraiqat, member of the board and group chief executive officer, said his bank delivered "strong financial results for the nine month period of 2016, reporting a net profit Dh3.153 billion and an industry leading return on equity of 16 per cent."
"While the challenging operating environment and the turbulent markets have impacted the industry, our underlying performance and fundamentals remain strong and we continue to grow our businesses," the chief executive said. "Our balance sheet remains resilient and registered a healthy growth in net loans and customer deposits year to date, 10 per cent and seven per cent respectively," he said.
Deepak Khullar, group chief financial officer, termed the performance as "solid." "Our balance sheet remains strong with continuous focus on granular loan growth. Year-to-date, wholesale banking loans (gross) were up five per cent and consumer banking loans (gross) were up nine per cent. Our capital ratios remain robust and our low cost CASA deposits comprised 42 per cent of our total customer deposits as at 30 September 2016."
"Operating in a tighter liquidity environment, the bank also increased its time deposits significantly, which resulted in higher cost of funds year on year," he said.
- haseeb@khaleejtimes.com




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