Abu Dhabi's ADCB Q2 net profit climbs 12% on Islamic financing income
The quarterly figure beat SICO Bahrain's estimate
Abu Dhabi Commercial Bank reported a 12 per cent year-on-year rise in its second-quarter net profit on the back of a rise in Islamic financing and non-interest incomes.
Net profit attributable to equity shareholders in the three months to June 30 climbed to Dh1.13 billion, ADCB said on Thursday in a statement to Abu Dhabi bourse, where its shares are traded.
The quarterly income was slightly above SICO Bahrain’s 1.12bn forecast for the second-quarter, according to a Reuters poll.
“Good progress was made on a significant number of fronts, consistent with our objective of delivering sustainable growth,” Alaa Eraiqat, chief executive of ADCB said.
“We continue to invest in our businesses and focus on our commitment to build digital technologies …. whilst effectively managing our cost base and optimising our balance sheet.”
The profitablity of UAE banks is strengthening thanks to an uptick in economic activity on the back of higher oil prices that touched a three-year high of $80 per barrel last month. The financial profiles of GCC banks are expected to stabilise further in 2018 as the operating environment improves and credit growth gradually returns to the financial institutions, according to analysts including those at rating agencies S&P Global Ratings and Moody’s Investors Service.
Its net interest and Islamic financing income climbed 7 per cent to Dh1.78bn, while non-interest income surged 16 per cent to Dh504m for the period, it said.
Impairment charges to cover bad loans reached Dh770m, a 5 per cent decline from a year-earlier.
The bank said its operating expenses rose 15 per cent to Dh775 million from a year earlier.
The lender’s net loans and advances increased 2 per cent to Dh166bn, while deposits from customers rose 5 per cent to Dh172bn over the first six months of this year, it noted.
Updated: July 26, 2018 03:24 PM