Dubai: Abu Dhabi Commercial Bank (ADCB) reported on Sunday a 13 per cent decline in profits for the third quarter of 2019 as income dropped and expenses inched higher.
Profits reached Dh1.4 billion in the quarter, bringing profits in the first nine months of 2019 to Dh4.2 billion, down 14 per cent year-on-year. The bank also said it expects to see Dh840 million in cost benefits from its merger, an upwards revision from the Dh615 million projected earlier.
The synergy benefits will be realized by the end of 2021, and come after the bank merged with Abu Dhabi’s Union National Bank and then acquired Al Hilal Bank in May 2019.
The profits for the third quarter are for the newly-created entity and are in comparison to the total earnings of the three separate banks in the same period last year.
Alaa Eraiqat, group chief executive officer of ADCB, said the earnings came amid a “challenging economic environment, marked by muted credit growth.”
Both loans and deposits declined at the end of September, with net loans at Dh249.5 billion, down 1 per cent quarter-on-quarter. Meanwhile, deposits from customers fell by 4 per cent to Dh262.5 billion.
“We remain positive on the long-term outlook for the UAE economy, which will be driven by continued investment in social and economic initiatives to promote sustainable growth,” the CEO said in a statement.