Business | Banking
ADCB profit falls 3% to Dh2.08b in 2007
Abu Dhabi Commercial Bank's board recommends 30% cash dividend totalling Dh1.2b.
- Staff Report
- Published: 21:34 February 4, 2008
Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) announced a profit of Dh2.08 billion for last year, down three per cent compared to Dh2.14 billion in 2006.
The board of ADCB has recommended a 30 per cent cash dividend totalling Dh1.2 billion.
The bank allocated a general provision of Dh560 million out of its 2007 accounts.
"As reported in the third quarter financial results, ADCB continued to be prudent in taking extra measures towards the investments made in the international capital markets, which has been unsettled in the recent months," the bank said in a statement in direct reference to the provisions.
ADCB statement was not specific on the nature of provisions. However, an equity research report from HSBC in November last year had warned of exposure to structured products, the value of which eroded significantly following the US sub prime turmoil.
"Many banks globally have been affected by the events in the capital markets in the second half of 2007 and we believe that we have been prudent in addressing this in our 2007 accounts and we expect limited impact in the future," said Eirvin Knox, Chief Executive of ADCB said.
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