Fee, commission boost ADCB's profit to Dh1.2b

Top Stories

Fee, commission boost ADCBs profit to Dh1.2b
ADCB Bank

Abu Dhabi - Abu Dhabi Commercial Bank's earnings in the first nine months of the year rose 18 per cent year-on-year to Dh3.736 billion.

By Haseeb Haider

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Mon 19 Oct 2015, 12:00 AM

Last updated: Tue 20 Oct 2015, 9:44 AM

Abu Dhabi Commercial Bank, or ADCB, earnings grew 18 per cent in the third quarter of the year to Dh1.204 billion on higher fees and commissions.The nation's third biggest lender by assets said its earnings in the first nine months of the year rose 18 per cent year-on-year to Dh3.736 billion.
In the nine months period net profit attributable to equity shareholders rose 23 per cent year-on-year to Dh3.734 billion, operating income climbed 11 per cent year-on-year at Dh6.245 billion, with net interest income up 13 per cent to Dh4.729 billion and non-interest income up four per cent to Dh1.515 billion. Net fees and commission income showed double digit growth of 17 per cent reaching Dh 1.052 billion, the lender said, on Sunday.
The Abu Dhabi-owned lender reported 11 per cent year on year increase in net loans and advances crossing Dh151 billion mark; deposits grew seven per cent to Dh130 billion and low cost CASA deposits comprised 48 per cent of total deposits.
In a regulatory statement to Abu Dhabi Securities Exchange the lender said the return on equity rose to 21 per cent compared to 18.2 per cent in the January-September period of the year.
Ala'a Eraiqat, chief executive officer, said the bank has "consistently delivered good financial results despite the volatility in the global financial markets."
"We are focused on maintaining a conservative balance sheet and delivering strong returns, which is reflected in our results, with an industry leading return on equity of 21 per cent for the nine month period of 2015 while generating a healthy loan and deposit growth year on year, up 11 per cent and seven per cent respectively." The chief executive showed his confidence in the long-term growth of the economy. "We have a strong franchise and remain disciplined to deliver sustainable growth as a result of our unique platform focused on our core geography and core businesses and strive to deliver an outstanding experience for all our customers and clients in serving their business needs," he said.
Deepak Khullar, group chief financial officer was satisfied with the double-digit growth in net profit in an environment of "intense competition" for market share and margin compression.
"We saw decent growth in our loan book. Wholesale Banking loans were up five per cent, while Consumer Banking loans were up eight per cent year-to-date, helping us to maintain our margins as we continue to see growth in higher yielding loans, supplemented with improved recoveries, interest in suspense reversals and lower impairment charges," said chief financial officer.
Khuller said: "Our increased emphasis on fee income generation resulted in a 17 per cent increase in fee income year on year, for the nine month period of 2015, a significant driver of growth for the Bank.
"We have been growing revenues whilst effectively managing our cost base. Our cost to income ratio for the nine month period was at 33.8 per cent, within our target range," he said.
- haseeb@khaleejtimes.com



More news from