ADCB: Hopes for best, prepares for worst

Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) yesterday reported a 36 per cent drop in profit for the first quarter compared with the same period last year but still managed to beat some analysts' expectations.

The UAE's third-largest lender by assets said profit reached Dh225 million after reporting one of its worst quarters ever at the end of 2009 with a Dh1.2 billion loss on heavy provisioning against non-performing loans (NPL).

"Robust top line numbers were impacted by significant impairment charges on the loan and investment book," ADCB Chief Executive Officer Ala'a Eraiqat said in a statement. "This is in line with our medium term strategy and our continuation of building a stronger ADCB for the future and wish for the best yet prepare for the worse."

ADCB earnings have suffered as a result of exposure to the local real estate market, retail loans and high-profile corporate defaults as is the case with troubled Saudi groups Saad and Algosaibi.