ADIB Q3 net profit surges 31pc
Abu Dhabi, October 18, 2010
Abu Dhabi Islamic Bank (ADIB), the second largest Islamic lender in the UAE, said its net profit in the third quarter rose 31.3 per cent to Dh314.5 million ($85.62 million) from Dh239.3 million last year.
The bank said it would continue to take provisions and impairments as it sees continued economic weakness.
EFG-Hermes, a Middle East broker, had estimated ADIB to post a third quarter profit of Dh322 million. Loan provisions, which offset any income, jumped 36 percent from the previous year to Dh165.6 million.
'Despite the continuation of the weak global economic environment, ADIB remains firmly on its now established growth trajectory,' said chief executive Tirad Mahmoud.
'We will continue to take prudent measures, including further credit provisions and impairments, in line with relevant policies and developments,' he remarked.
Customer deposits grew 29.3 per cent while net customer financing climbed 20.1 per cent. Total income climbed to Dh810.3 million.
ADIB had announced the official launch of its wealth management division in late September and has plans to launch funds in the near future.
The bank signed a $300 million loan facility with Al-Jaber Energy Services in August and lent $100 million to National Petroleum Construction Company (NPCC) for the construction of a new barge in September.
ADIB said on Monday that the bank will kick off a non-equity investor roadshow in Asia, Europe and the Middle East on October 20 amid talks that the lender is planning to issue an Islamic bond (sukuk).
Sources said the bank mandated Barclay's Capital, HSBC and Standard Chartered for the sukuk.-Reuters