Home GCC UAE UAE’s ADCB posts Q3 2020 net profit of Dhs1.3bn; down 3% y-on-y It reported a nine-month net profit from January-September 2020 of Dhs2.802bn, down 33 per cent compared to Dhs4.196bn in the corresponding period last year by Varun Godinho October 29, 2020 Abu Dhabi Commercial Bank (ADCB) reported Q3 2020 net profits of Dhs1.366bn, which were 3 per cent lower year-on-year, although it was up 11 per cent quarter-on-quarter. It reported a nine-month net profit from January-September 2020 of Dhs2.802bn, down 33 per cent compared to Dhs4.196bn in the corresponding period last year. Operating income increased 2 per cent sequentially to Dhs2.991bn in the third quarter this year, while its operating expenses were 14 per cent lower year-on-year at Dhs1.102 billion. Net impairment charges were recorded at Dhs504m, 25 per cent lower quarter-on-quarter on account of higher recoveries and releases. The bank said that its net loans meanwhile increased 2 per cent quarter-on-quarter to Dhs243bn as of September 30, 2020, and were 2 per cent lower year to date “on account of large corporate repayments in June and de-risking of its retail portfolio.” Non-interest income increased 19 per cent quarter-on-quarter to Dhs706m, with net fee and commission income up 21 per cent. Cost to income ratio, excluding one-off integration costs, stood at 34.3 per cent for the January-September 2020 period, an improvement of 335 basis points year on year, while operating expenses (excluding integration costs) were down 14 percent year on year. The average loan balance was Dhs245bn during the first nine months of 2020. It participated in the UAE government’s Targeted Economic Support Scheme (TESS) which aimed to help businesses in the country counter the financial impact of the Covid-19 pandemic. ADCB thereby offered measures including deferment of loan installments, reduced fees and charges, interest rate reductions and waivers, and rescheduling of working capital facilities for SMEs and corporates. At the end of the third quarter, it had extended a cumulative total of Dhs9.962bn to support over 67,000 retail and corporate customers. It received repayments of Dhs2.24bn to date, resulting in outstanding deferrals reducing to Dhs7.7bnas on September 30, 2020. Its network of branches has reduced to pre-merger levels of 54 prime locations in the UAE at the end of Q3 2020, down from 73 branches in the second quarter this year and a peak of 127 at the time of its merger with Union National Bank in May 2019. “A marked development in recent months has been the popularity of our digital platforms, with the rate of adoption by our customers increasing substantially, even as lockdown measures in the UAE were eased. Registered users on the bank’s mobile and internet banking increased by 18 per cent over last year to approximately 800,000 customers. ADCB is investing significantly to ensure that we remain at the forefront of financial technology, with 60 successful digital launches including new products, services and enhanced app features in the first nine months of this year, double the rate of last year,” said Ala’a Eraiqat, group CEO of ADCB and board member. Earlier this year, the bank reported a Q1 2020 net profit of Dhs209m, down nearly 82 per cent from Dhs1.152bn in the corresponding period last year, mainly as a result of the NMC impairment charges. Read: UAE’s ADCB posts 82% drop in Q1 net profit on NMC impairment charges Tags Abu Dhabi Commercial Bank ADCB Banking Economy finance UAE 0 Comments You might also like Empowering women entrepreneurs: unlocking a multi-trillion-dollar opportunity OKX shakes up Dubai’s crypto scene with new exchange UAE seals bilateral trade talks with Malaysia Telecom giant du revamps b2b portfolio, unveils new sub-brands