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ADCB's Q3 profit up 46 per cent

IPO revenues contributed a significant share of first half 2006 profits and were not repeated in 2007. Comparing profits for the first nine months without

the IPO income in 2006 reflects an increase of 30 per cent for continuing core profits.

The third quarter net profit has increased 46 per cent to Dh606.7 million compared to Dh418 million in the corresponding period in 2006 and 20 per cent over the Dh506 million reported for the second quarter of 2007. Total assets grew strongly to Dh100.4 billion reflecting an increase of 40 per cent over September 2006 assets of Dh71.9 billion. Net loans and advances increased Dh16.6 billion (+31 per cent) to Dh70.6 billion compared to Dh54 billion for the same period of 2006. The increase in loans was funded by increases in customer deposits of Dh13.8 billion (+32 per cent) to Dh53.8 billion over Dh40.9 billion in 2006 with significant increases across most deposit types. Eirvin Knox, Chief Executive Officer of ADCB stated that the bank has successfully replaced the one-off IPO profits with core income which is an indication of the strong recurring profit performance of the bank.

Knox went on to state that the investment portfolio of ADCB has been negatively affected by the turmoil in the international capital markets and we have taken a charge to third quarter profits of Dh70 million. We also took a charge to the bank capital of Dh213 million to reflect current market prices for investments. We consider these provisions to adequately reflect the situation of our portfolio of investments in the current market environment.

The ADCB Medium Term Note (MTN) programme continues to form a key part of the Bank's liability strategy and at the end of September 2007, borrowings under the programme were Dh22.4 billion reflecting a growth of D11.8 billion (+112 per cent) over September 2006 outstanding of Dh10.6 billion.