ADCB Q3 net profit surges, beats forecasts
Abu Dhabi, October 25, 2011
Abu Dhabi Commercial Bank, the fourth largest bank in the UAE by market value, nearly doubled its third-quarter net profit on Tuesday, beating analysts forecasts, helped by lower impairment provisions and higher net interest income.
ADCB, 58-percent owned by the government of Abu Dhabi, posted a net profit of 607.6 million dirhams ($165.5 million) in the third quarter, compared with 317.7 million dirhams in the year earlier period, the bank said in a statement.
Analysts polled by Reuters earlier this month forecast an average third-quarter net profit of 461.17 million dirhams.
"Our disciplined approach to balance sheet and capital management resulted in significant improvement in our liquidity levels and strengthened funding profile. For the quarter, funding costs were at their lowest level," Deepak Khullar, chief financial officer said in the statement.
Net impairments allowances booked in third quarter was 514 million dirhams, down 22 percent over the same period last year. Year to date net impairments stood at 1.84 billion dirhams, 30 percent lower over last year, the bank said.
Net interest and Islamic finance income grew to 1.33 billion dirhams in third quarter compared with 877 million dirhams in the same period last year.
ADCB gave out a $1.9 billion loan to sovereign fund Aabar's parent International Petroleum Investment Co (IPIC) to finance Aabar's purchase of ADCB's 25-percent stake in RHB Capital, sources told Reuters earlier this month.
ADCB shares were halted for trading on the Abu Dhabi bourse Tuesday pending announcement of results. They have risen 32 percent year-to-date. - Reuters