Business | Banking
ADCB reaps Dh2.14b net profit
Abu Dhabi Commercial Bank (ADCB) yesterday reported a 12 per cent rise in its net profit to a record Dh2.14 billion last year, against Dh1.92 billion in 2005, according to a company statement.
- Staff Report
- Published: 00:00 January 22, 2007
Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) yesterday reported a 12 per cent rise in its net profit to a record Dh2.14 billion last year, against Dh1.92 billion in 2005, according to a company statement.
The bank's board recommended Dh1.21 billion cash dividend, which is 30.25 fils per share, representing 60 per cent of the net profit and reflecting an increase of almost four times the previous cash dividend of Dh312.5 million. The recommendation is subject to shareholders' approval at the forthcoming annual general meeting.
"Several factors contributed to the strong results, including strong growth in recurring fees and commissions and rapid growth of loans to all sectors," the statement said.
The Government of Abu Dhabi, through Abu Dhabi Investment Authority, holds 65 per cent of ADCB's capital. The rest is held by various UAE institutions and nationals. ADCB's market capitalisation as on December 31, 2006 stood at Dh22.8 billion.
ADCB's operating profit in 2006 has risen to Dh3.1 billion, a 16 per cent increase over 2005.
Its total assets also increased by 41 per cent from Dh57.7 billion to Dh81.1 billion.
The bank's loans and advances lead the balance sheet expansion, rising by 48 per cent to Dh62.4 billion.
Eirvin Knox, chief executive officer of ADCB, said, "The exceptional figures and performance achieved by ADCB in 2005 are the result of focusing on expanding our core businesses lines and generating recurring business growth by offering superior products to our customers.
"Going forward, we intend to continue with above-average profitability, generating returns on equity in excess of 20 per cent and continue to pay a high rate of cash dividends to our shareholders."
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