ADCB Q1 net profit up 38pc, beats estimates

Abu Dhabi, April 24, 2012

Abu Dhabi Commercial Bank (ADCB) the emirate's third-largest lender by market value, posted a 38-per cent increase in first quarter net profit on Tuesday due to lower impairments and higher interest income.

ADCB said its net profit in the first quarter surged to Dh802 million ($218.52 million)  compared to Dh583 million a year earlier, ahead of analysts' forecasts.

Analysts polled by Reuters forecast an average first-quarter net profit of Dh641.25 million. Impairment allowances for the first quarter totalled Dh287 million, down 28 per cent from Dh399 million in the prior year period, the statement said.

On the other hand, net interest and Islamic finance income rose to Dh1.19 billion from Dh926 million a year ago.

The deposits were up 4 per cent in the first quarter totalling Dh114.5 billion but loans growth was nearly flat at Dh130.46 billion compared to end-December 2011.

ADCB's total assets fell slightly to Dh182.9 billion in first quarter from Dh183.7 billion as of end December 2011.

In late March, ADCB agreed to provide a $500 million loan to Abu Dhabi investment fund Mubadala in exchange for a 14 per cent stake in indebted developer Aldar Properties

The lender sold its stake in Malaysia's RHB Capital last year to Abu Dhabi fund Aabar Investments for $1.91 billion.-Reuters

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