Dubai: Abu Dhabi Commercial Bank (ADCB) reported on Sunday a 5 per cent year-on-year increase in its profits for the third quarter of 2018 as net interest income grew and impairment costs dropped.
The bank’s outlook remains positive as new reforms, initiatives, and economic stimulus by the government drive further growth.
The bank reported Dh1.15 billion in profits for the quarter, up from the Dh1.09 billion recorded in the third quarter of 2017. The earnings put profits in the first nine months of this year at Dh3.48 billion, a 9 per cent jump year-on-year.
Rise in profits for the first nine months
The rise in profits was driven by an 8 per cent gain in net interest and Islamic financing income in the third quarter, and a 17 per cent decline in impairment costs, which stood at Dh347 million in the quarter.
“We remain positive on the outlook for the UAE economy as new reforms, initiatives, and economic stimulus launched by the government drive further growth,” said Alaa Eraiqat, group chief executive officer of ADCB.
Rise in ratio of non-performing loans
In its management report, the bank said there were no updates on its talks about a possible merger with Abu Dhabi’s Union National Bank. The two had entered “exploratory talks” about possibly merging, as ADCB entered similar talks with Al Hilal Bank.
“At this time, there is no certainty that these negotiations will result in a transaction,” the report said, adding that the bank will update the market if there are any “material developments”.