ADCB’s 9-month profits surge 9%

dubai — Abu Dhabi Commercial Bank on Sunday said its 9-month net profits jumped 9 per cent to Dh3.483 billion, thanks to growth in net interest income and Islamic financing income and drop in impairments.

Total net interest income and Islamic financing income rose 9 per cent to Dh5.417 billion while operating income reached Dh6.937 billion, up 5 per cent. Impairment allowances dropped 9 per cent to Dh1.117 billion.

The Abu Dhabi-listed lender had announced in September that it was exploring merger with Union National Bank and Al Hilal Bank.

“At this time, there is no certainty that these negotiations will result in a transaction. ADCB is committed to the highest standards of regulatory disclosure and will update the market if and when there are any material developments,” it said in a statement on Sunday.

Two of Abu Dhabi’s top banks merged last year to create First Abu Dhabi Bank, with assets of $175 billion, while two of its big sovereign wealth funds were also combined. Ala’a Eraiqat, Group CEO, ADCB, said central to the bank’s approach is implementing strict discipline in pricing risk and on managing exposure and concentration. “The operating environment continues to be influenced by rapid changes in technology, transforming customer expectations and behaviour. We are, therefore, investing heavily in digital transformation, talent development and IT security to position ourselves as a progressive player in this evolving environment. Implementation of our strategy is guided by a clear and compelling vision, and a strong set of shared values.”

However, ADCB chief remains positive on the outlook for the UAE economy as new reforms, initiatives and economic stimulus launched by the government drive further growth. “We will continue to create long-term value for our customers and shareholders.”

Deepak Khullar, Group CFO, ADCB, said net loans were up 1 per cent year-to-date, with the bank continuing to de-risk its unsecured retail loan portfolio, while growing its wholesale banking loans by 5 per cent. Customer deposits were up mainly on account of an increase in corporate time deposits.

In October 2018, the Bank’s credit rating was re-affirmed by S&P at A/Stable/A-1.