ADIB net up 20pc on higher revenue
Abu Dhabi, October 28, 2013
Abu Dhabi Islamic Bank (ADIB) on Monday beat analysts' forecasts with a 20 per cent rise in third-quarter net profit, helped by higher revenue from its core business and strong year-on-year asset growth.
Abu Dhabi's biggest sharia-compliant bank by market value made a net profit of 395.5 million dirhams ($107.7 million) compared with 328.5 million in the same period last year, it said in a statement. Three analysts polled by Reuters had on average forecast a net profit of 346.3 million.
UAE banks had been expected to continue posting strong profit growth in the third quarter after bumper earnings in the first half of the year, aided by a positive economic backdrop and falling provisions.
Abu Dhabi Commercial Bank and Emirates NBD , the two largest banks to have reported third-quarter numbers so far, posted year-on-year net profit growth of 47 and 21 percent respectively.
ADIB's profit increase reflected a 9.9 percent gain in revenue over the same three months of 2012 to 1.02 billion dirhams, with income from fees and commissions up more than 50 percent.
Total assets climbed 18.2 percent to 96.4 billion dirhams as at Sept. 30, with customer deposits up 12.5 per cent to 70.2 billion.
Loans and advances increased 5 percent to 58.9 billion dirhams, while provisions were slightly lower at 193.5 million in the three months to Sept. 30 versus 202.1 million in the corresponding period of 2012.
"On the back of three quarters of sustained asset and profitability growth, our outlook for the full year is positive and we remain committed to our growth strategy," said Tirad Al Mahmoud, CEO of the bank, in the statement. - Reuters
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