Abu Dhabi Commercial Bank Q2 net profit up 21%, beats estimates

Abu Dhabi Commercial Bank on Tuesday posted a 21 per cent rise in second-quarter net profit which slightly beat analysts’ forecasts, aided by lower loan impairments.

The fourth largest lender by market value in the United Arab Emirates made a net profit attributable to shareholders of Dhs 1.28bn ($349m) in the three months to June 30, compared to Dhs 1.06bn in the corresponding period of the previous year, it said in a bourse statement.

Analysts polled by Reuters had forecast an average profit of Dhs 1.18bn.

Impairment allowances fell to Dhs 84m in the second quarter from Dhs 233m a year earlier. Also, non-interest income – fees and commissions – jumped 10 per cent year-on-year; interest income and Islamic financing income grew 9 per cent.

Banks in the UAE are expanding their non-interest income as tough competition pressures profit margins in the lending market. Loan growth is in the single digits for many banks.

ADCB’s loans and advances totalled Dhs 146.0bn in June, up 4 per cent from last December. Customer deposits stood at Dhs 132.0bn, up from Dhs 126.0bn.

For the first half of 2015, ADCB reported a net profit of Dhs 2.53bn, 26 per cent up from a year earlier.