Tuesday, 25 October 2011 at 14:51, Reuters, Dubai
Abu Dhabi Commercial Bank's net interest income was Dh1.3 billion for the third-quarter. (VARUNA/ ALRROYA)
Abu Dhabi Commercial Bank, the fourth largest bank in the UAE by market value, nearly doubled its third-quarter net profit on Tuesday, beating analysts forecasts, helped by lower impairment provisions and higher net interest income.
ADCB, 58 per cent owned by the government of Abu Dhabi, posted a net profit of Dh607.6 million ($165.5 million) in the third quarter, compared with Dh317.7m in the year earlier period, the bank said in a statement.
Analysts polled by Reuters earlier this month forecast an average third-quarter net profit of Dh461.17m.
"Our disciplined approach to balance sheet and capital management resulted in significant improvement in our liquidity levels and strengthened funding profile. For the quarter, funding costs were at their lowest level," Deepak Khullar, chief financial officer said in the statement.
Net impairments allowances booked in third quarter was Dh514m, down 22 per cent over the same period last year. Year to date net impairments stood at Dh1.84 billion, 30 per cent lower over last year, the bank said.
Net interest and Islamic finance income grew to Dh1.33bn in third quarter compared with Dh877m in the same period last year.
ADCB gave out a $1.9bn loan to sovereign fund Aabar's parent International Petroleum Investment Co (IPIC) to finance Aabar's purchase of ADCB's 25 per cent stake in RHB Capital, sources told Reuters earlier this month.
ADCB shares were halted for trading on the Abu Dhabi bourse Tuesday pending announcement of results. They have risen 32 per cent year-to-date.
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