Bottom line was impacted by adverse market conditions
Abu Dhabi Commercial Bank profits dip on provisions
Abu Dhabi Commercial Bank (ADCB), the UAE's third largest lender, said yesterday that its second -quarter net profit dipped 10.3 per cent, missing analyst forecasts, as money set aside to cover bad debt grew and non-interest income plummeted.
Net profit in the three months ended June 30 reached Dh1 billion compared with Dh1.12bn a year earlier, the bank said. Total net interest and Islamic financing income rose 10 per cent year-on-year to Dh1.67bn but non-interest income declined 30 per cent to Dh434 million.
Four analysts polled by Bloomberg had forecast an average net profit of Dh1.11bn.
“While the bank’s fundamentals and underlying performance remained healthy, our bottom line was impacted by adverse market conditions, which resulted in higher impairment charges and a lower non-interest income in the second quarter,” said Ala’a Eraiqat, the chief executive of ADCB.
Impairment allowances rose 22 per cent to Dh427.4m from Dh350.8m a year earlier.
The lender also posted a net trading loss of Dh28.7m versus a gain of Dh179.6m in the same period last year.
* With Bloomberg