ADCB reports Dh2.11 billion profit in H1 2017

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Staff Report

Abu Dhabi – Abu Dhabi Commercial Bank (ADCB) net profit fell two per cent to Dh2.11 billion in the first half of 2017 due to a drop in non-interest income and higher impairment allowances.
The lender said in a statement that its non-interest income fell 11 per cent to Dh1.032 billion on account of lower net trading income of Dh137 million compared to Dh302 million in the first half of 2016 due to unrealised forex translation losses impacted by the adverse market conditions.
Eissa Mohamed Al Suwaidi, chairman of ADCB, said: “The bank navigates through turbulent markets with confidence. We are confident that the bank’s unchanged strategic pillars and strong balance sheet leaves us well placed to manage any economic headwinds, whilst continuing to deliver good returns for our shareholders.”
The emirate’s second-largest bank by assets made a net profit attributable to shareholders of Dh1.01 billion in the second-quarter compared to Dh1.13 billion in the same period a year ago. ADCB booked impairments of Dh427.4 million in the second quarter, compared to Dh350.8 million in the prior-year period, Reuters reported.
Total net interest income rose seven per cent to Dh3.305 billion, the lender said.
Operating income totalled Dh4.338 billion, up two per cent while operating profit before impairment allowances reached Dh2.926 billion, up three per cent. Operating expenses were Dh1.411 billion, a slight increase of one per cent over first-half of 2016.
The Abu Dhabi bank said it was net lender of Dh12 billion in the interbank markets and maintained a strong liquidity ratio of 23.4 per cent.
Total assets grew eight per cent to Dh259 billion and net loans and advances to customers increased six per cent to Dh164 billion over June 30, 2016. Deposits from customers increased nine per cent to Dh162 billion over June 30, 2016.