Abu Dhabi Commercial Bank Posts 22% Q2 Net Profit Hike

Abu Dhabi Commercial Bank, the fourth-largest lender by market value in the United Arab Emirates, beats estimates on Tuesday as it posted a 22 per cent rise in second-quarter net profit.

The bank made a net attributable profit of Dhs1.06 billion ($288.6 million) in the three months ending June 30, versus Dhs868.5 million in the corresponding period last year, it said in a statement.

Six analysts polled by Reuters earlier this month forecast an average net profit of Dhs983.8 million.

Aiding the profit growth was a 54 per cent reduction in the amount the bank set aside for bad loans, with impairments for the second quarter of 2014 set at Dhs233.5 million.

This helped to offset a 3.4 per cent drop in net interest income and a 13 per cent decline in non-interest income compared with the second quarter of 2013.

Loans and advances at the end of June stood at Dhs134 billion, gaining two per cent on the same point of 2013, while deposits rose three per cent to Dhs119 billion.