Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) on Sunday reported a full year net profit of Dh4.2 billion, up 16 per cent compared to 2013.
The bank’s total assets crossed Dh200 billion mark this year. “These results reflect sustained solid performances across all operations. Our strategy has delivered good performances over recent years and in 2014,” said ADCB Chairman Eissa Mohamed Al Suwaidi.
In 2014 the bank’s operating income grew 3 per cent to Dh7.52 billion while net fees and commission incomes were up 25 per cent to Dh1.24 billion.
Net loans and advances increased 7 per cent to Dh141 billion in 2014 as customer deposits from increased 9 per cent to Dh126 billion. Low cost CASA [current and savings accounts] deposits contributed 45 per cent of total deposits compared to 39 per cent as at year end 2013. Bank’s Islamic banking business remained a prime driver of growth, with Islamic financing assets (gross) up 5 per cent and total Islamic deposits up 15 per cent over 2013.
ADCB reported strong liquidity and capital position with capital adequacy ratio of 21.03 per cent and Tier 1 ratio of 17.01 per cent.
“Our capital adequacy ratio continues to be at industry leading levels at 21.03 per cent. Even with significantly high level of capital, our businesses have delivered a strong return on equity of 18.1 per cent, one of the highest among peers,” said Ala’a Eraiqat, Chief Executive Officer of ADCB.
Reporting robust liquidity, ADCB remained a net lender of Dh15 billion in the interbank markets at the close of 2014. The bank continued to show significant improvement in cost of funds. The cost to income ratio at was at 34 per cent at the year-end 2014.
Continuing improvement in asset quality, ADCB’s non-performing loan ratio improved to 3.1 per cent from 4.1 per cent in 2013. Non-performing loans declined to Dh4.6 billion from Dh5.7 billion at year-end 2013 and the collective impairment allowance balance was 2.14 per cent of credit risk weighted assets at the close of 2014.
“In an environment of margin compression and intense competition, we have managed to reduce our cost of funds and maintain our net interest margin at stable levels. Our cost base is efficiently managed and asset quality shows continued improvement with provision coverage ratio increased to 137.1 per cent for the year and past due and impaired loans decreased by 19 per cent over 2013, while cost of risk was reported at record low levels,” said Eraiqat.
The bank said it is deeply committed to the UAE economy with 90 per cent of loans (gross) in the UAE.
The bank’s earnings per share (EPS) improved by 25.4 per cent to Dh0.74 compared to Dh0.59 in 2013. In response to the strong financial performance, the board of directors has recommended a cash dividend of 40 fils per share, translating to a pay out of Dh2.080 billion equivalent to 50 per cent of net profit.
