ABU DHABI: Abu Dhabi Commercial Bank (ADCB) reported a 16 percent rise in fourth-quarter net profit on Sunday, aided by higher revenue and lower impairments.
The earnings continued a mixed fourth-quarter results season for UAE banks, with Emirates NBD and Dubai Islamic Bank reporting bumper profit growth but National Bank of Abu Dhabi, Mashreq and Union National Bank recording profit slumps.
ADCB, the emirate’s third-largest bank by assets, made a net profit attributable to shareholders of AED1.19 billion ($324 million) in the three months to Dec. 31, compared with AED1.02 billion in the corresponding period of the previous year, it said in a bourse statement. Two analysts polled by Reuters had forecast net profit for the quarter of AED986 million and AED1.12 billion respectively.
The earnings were boosted by a 7 percent year-on-year increase in quarterly operating income to AED2.01 billion, while the amount the bank set aside to cover bad loans was 28 percent lower than the fourth quarter of 2014 at AED110 million.
Naveed Ahmed, senior manager at Global Investment House, said he was positive on the results, noting the “massive drop in its provisions due to improvement in asset quality.”
ADCB lifts profit as revenue rises and impairments shrink
