UAE's ADCB Q1 profit down, misses forecast

Abu Dhabi Commercial Bank on Tuesday reported a 36 per cent drop in first-quarter profit, missing analyst forecasts, after booking provisions against bad loans.

The lender is one of the region's most exposed banks to indebted conglomerate Dubai World and one of two UAE banks on an informal seven-member coordinating committee negotiating the company's restructuring plan.

ADCB made a profit of Dh225m in the first three months of the year versus Dh353.7m in the same period in 2009.

The bank set aside Dh681m in impairment charges in the first quarter.

Analysts polled by Reuters had estimated an average first quarter profit of Dh270m.

Gross loans grew 8 per cent in first quarter and deposits increased 23 per cent compared to the same period last year, a company statement said.

Record provisions dragged ADCB to a hefty loss in the previous quarter, highlighting the scale of the debt crisis that has hit Dubai.

The bank raised $1bn in October as the first tranche of its $7.5bn bond programme, and speculation is increasing that ADCB could come to market again in 2010, after a successful transaction by National Bank of Abu Dhabi in March.

Rival National Bank of Abu Dhabi earlier on Tuesday posted a net profit of Dh1.031bn in first quarter, up 34 per cent over the same period last year.