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UPDATE 1-Abu Dhabi Commercial Bank Q3 net up 47 pct on lower provisions
October 23, 2013 / 11:58 AM / 4 years ago

UPDATE 1-Abu Dhabi Commercial Bank Q3 net up 47 pct on lower provisions

* First major UAE bank to report Q3 earnings

* Q3 attributable net profit 874 mln dhs vs 595 mln

* Quarterly impairments 308 mln dhs vs 529 mln

* Deposits rise as loans fall

* Loans still exceed deposits

ABU DHABI, Oct 23 (Reuters) - Abu Dhabi Commercial Bank (ADCB), the first major United Arab Emirates lender to report third-quarter earnings, announced on Wednesday a 47 percent rise in profit, beating analysts’ forecasts. It cited lower bad loan provisions.

Net profit attributable to equity holders of the bank was 874 million dirhams ($238.2 million) in the three months to Sept. 30 versus 595 million dirhams in the year-ago period.

Seven analysts polled by Reuters earlier had forecast an average profit of 772 million dirhams.

The bank’s overall net profit for the third quarter also rose 47 percent, to 920 million dirhams from 626 million.

For the nine months to Sept. 30, attributable net profit stood at 2.57 billion dirhams, up from 2.11 billion dirhams a year earlier.

Loan impairment allowances were 42 per cent lower in the third quarter at 308 million dirhams compared to 529 million dirhams in the third quarter last year. Many UAE banks are enjoying strong profit growth this year as losses related to the property market crash of 2008-2010 peak out.

However ADCB, nearly 60 percent owned by the Abu Dhabi government, said loans fell by 2 per cent from a year earlier to 120.2 billion dirhams at the end of September.

This contrasted with modest loan growth at some other UAE banks; loans and advances in the industry rose 6.4 percent from a year earlier in July, the fastest rate since at least 2009, according to the most recent UAE central bank data.

ADCB’s deposits edged up 3 per cent to 112.0 billion dirhams in September. For many other UAE banks, deposits now exceed loans by substantial margins. (Reporting by Stanley Carvalho, editing by Andrew Torchia)

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