Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) on Sunday reported Dh4.927 billion in net profit for 2015, marking a 17 per cent increase over the Dh4.2 billion recorded in 2014.

The bank stated that in the fourth quarter of 2015 alone, net profit stood at Dh1.19 billion, up 16.4 per cent over the same quarter in 2014, but down one per cent quarter-on-quarter compared to the Dh1.2 billion recorded in Q3 2015.

ADCB recommended a cash dividend of 45 fils per share, translating to a payout of Dh2.34 billion (excluding treasury share) — equivalent to 47 per cent of net profits. The dividends mark an increase from the 40 fils per share paid by the bank last year.

“While 2016 is expected to be a more challenging year for financial services globally, the bank will continue to monitor conditions closely and will take action as necessary. Whilst lower oil prices pose a challenge, the UAE’s economy remains robust and diversified. Going forward, we will stay committed to our clients and customers in our core geography and core businesses,” Eisa Al Suwaidi, Chairman of ADCB, said in a statement.

The bank’s total assets reached Dh228 billion at the end of 2015, up 12 per cent on 2014. Net loans and advances rose nine per cent year-on-year to Dh154 billion and registered a two per cent increase quarter on quarter. Around 90 per cent of the loans were within the UAE.

Sebastien Henin, head of asset management at The National Investor, said the results were above expectations, with the Bloomberg consensus for Q4 2015 net profits at Dh1 billion.

“I think ADCB released a strong set of numbers especially in a very challenging environment, so the bank was able to properly weather this environment. The environment in 2016 will be more challenging; loan growth will probably slow. The cost of risk might increase a little bit on specific segments like SMEs [Small and Medium Enterprises] and retail,” he said.

Henin added that he expected the slowdown in projects to have some repercussions on credit growth for banks. “I don’t think the [interest rate hike by the Federal Reserve] will have a major impact this year on banks. I think the major challenge will be the shortage of liquidity that we are facing in the market.

“At the end of the day, interest rates are still very low, so I think the issue is more related to the outlook because now we have less visibility compared to one year ago, and that might trigger some projects to be delayed. For banks, this means they will produce less loans,” he said.

Looking at liabilities, ADCB’s customer deposits also jumped 14 per cent to Dh143.5 billion as of December 31, 2015, up from the Dh126 billion recorded at the end of 2014, and up 10 per cent from the Dh130 billion recorded in the first nine months of 2015.

The bank’s net interest and Islamic financing income for the full year reached Dh6.2 billion, marking an 11 per cent increase from the Dh5.58 billion in 2014.