ADCB reports Dh3b net profit for 2011

Dubai: Abu Dhabi Commercial Bank on Thursday reported Dh3 billion net profit for 2011 compared to Dh391 million reported in 2010.

In the fourth quarter, the bank's net profit increased 29 per cent to Dh514 million compared to Dh371 million reported in the fourth quarter of 2010.

The massive jump in ADCB's full year profit was partly aided by the income from the sale of its stake in Malaysia's RHB Capital last year. The bank gained Dh1.31 billion from the RHB stake sale. 

Additionally a significant drop in impairment allowances on loans and advances also boosted the bank's profits last year. ADCB said today its impairments fell to Dh2.08 billion from Dh2.86 billion in 2010. 

For the full year of 2011 the bank's net interest income and Islamic financing income was up 27 per cent to Dh4.68 billion as operating income surged 21 per cent to Dh6 billion.

Operating profit before impairment allowances is up 20 per cent at Dh 4 billion and the net interest margin improved from 2.57 per cent in 2010 to 3.1 per cent in 2011.