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ADCB Profits Slump in Third Quarter

ABU DHABI — The net profits of Abu Dhabi Commercial Bank, or ADCB, plummeted by 57 per cent in the first nine months of this year, from the figures of the same period last year, as the bank had to make huge provisions for any probable loss in its loan portfolio and some investments.

The net profit in the third quarter this year was only 44 million and it marks a 85 per cent dip from what was achieved in the previous quarter. This was because of the increased provisioning of Dh 810 million in the quarter, and this was almost double the provisioning made in the previous quarter, a statement from ADCB said here on Tuesday.

The bank posted a net profit of Dh701 million in the first nine months this year, while the figure was Dh1620 million for the same period last year.

Non- performing loans climbed to 4.2 per cent of total credit as Saudi Arabia’s Saad and Algosaibi groups defaulted on loans, the statement said. The bank had earlier divulged that its exposure to the two troubled groups was to the tune of Dh 2.24 billion. Excluding exposures to these groups the bank’s non-performing loans stood at 2.6 per cent, the statement claimed. The bank had posted a pre-provision profit of Dh 2,405 million in the first nine months this year which was eight per cent higher than the same period last year. The bank has set aside 70 per cent (Dh17 billion) of the pre-provision profits this year for loan and investment impairments.

The bank has also delivered strong income growth of nine per cent this year, according to the Ala’a Eraiqat, the bank’s CEO.

ramavarman@khaleejtimes.ae