Dubai: Abu Dhabi Commercial Bank (ADCB) reported a net profit of Dh2.53 billion in the first half of 2015, up 17 per cent year on year compared to Dh2.16 billion in the same period last year.
For the second quarter of the year the bank’s net profit was up 21 per cent year on year to Dh1.28 billion.
“Our financial results for the first half of the year reflected strong underlying performance across our businesses. Asset quality improved further, with a non-performing loan ratio of 3 per cent and provision coverage of 139 per cent as at 30 June 2015,” said Ala’a Eraiqat, Member of the Board and Chief Executive Officer of ADCB.
Total operating income for the first half of 2015 was Dh4.23 billion, up 12 per cent year on year. Total net interest income for the period was Dh3.18 billion, up 14 per cent compared to the first half of 2014 on improved margins and higher loans and advances.
Net interest margin (NIM) for the first six months of 2015 was 3.47 per cent compared to 3.32 per cent in the first half of 2014.
Non-interest income for the first half of 2015 was Dh1 billion, up 7 per cent year on year. Net fees and commission income totalled Dh718 million, up 22 per cent accounting for 68 per cent of total non-interest income in the first half of 2015.
ADCB’s net loans and advances were up 9 per cent year on year in the first six months of the year and up 4 per cent year to date. In line with the bank’s UAE centric lending strategy, 90 per cent of loans (gross) were within the UAE.
Total customer deposits were up 11 per cent year on year at Dh132 billion and up, 4 per cent year to date. “We have sought to develop a sustainable cost of funds advantage through low cost current account and savings account (CASA) deposits. Our CASA deposits now constitute 49 per cent of our total deposits compared to 45 per cent as at 31 December 2014 and 39 per cent as at 31 December 2013,” said Eraiqat.
As at June 30, 2015, ADCB’s advances to stable resources ratio was 88.1 per cent compared to 88.5 per as at December 3, 2014 and loan to deposit ratio was 110.74 per cent compared to 111.55 at year end 2014.
At the close of the first half of 2015, the bank’s capital adequacy ratio was 19.8 per cent and Tier I ratio was 16.10 per cent. The bank continued to maintain strong liquidity with the liquidity ratio of 25.1 per cent at the close of the first half of the year.
In the first half of the year charges for impairment allowances on loans and advances, net of recoveries amounted to Dh333 million, down 21 per cent compared to Dh422 million in the same period last year. Non performing loans (NPL) and provision coverage ratios were 3 per cent and 138.6 per cent respectively. As at 30 June 2015, the bank’s collective impairment allowance balance was Dh3.034 billion, 2.09 per cent of credit risk weighted assets.
