Abu Dhabi:
Abu Dhabi-based lender Abu Dhabi Islamic Bank (Adib) said yesterday the group’s fiscal third quarter net profit rose 3 per cent on the year to Dh328.5 million while its net revenue jumped 12.1 per cent to Dh924.1 million.
In a statement, Adib said the group’s total credit provisions and impairments for Q3 2012 were Dh202.1 million, representing a 34 per cent increase from the same quarter a year earlier.
The bank’s net profit for the quarter rose 14.5 per cent on the year to Dh405.7 million while revenue rose 11.7 per cent to Dh930 million.
The group’s net profit for the first nine months this year was Dh958.5 million, a 2.1 per cent increase on the year on revenues of Dh2,681.6 million, ADIB added.
Commenting on the bank’s third quarter financial performance, Tirad Al Mahmoud, Adib’s chief executive officer said: “The environment in which we operate remains challenging as the global financial crises and the uncertainty resulting from the malaise in Europe preoccupies decision makers and regulators around the world. While we are encouraged by the recent positive Abu Dhabi economic data, our customers continue to feel the effects of the prolonged crises and growth in the banking sector as a whole remains subdued.”
He added: “Of equal concern is the continued compression of credit spreads triggered by higher competition among banks who are trying to grow their loans and advances while the market aggregate shows a low growth rate for the market as a whole, as evidenced by the recent Central Bank data showing a 1.8 per cent increase (net of provisions) in the first eight months of 2012. If this trend continues, we expect a reduction in profits for the UAE banking sector as a whole for the full year.”
Adib’s stock on the Abu Dhabi Securities Exchange (ADX) yesterday closed 0.61 per cent higher at Dh3.29.
