ABU DHABI: Abu Dhabi Commercial Bank (ADCB), the UAE’s third largest lender by market value, posted a 40 percent rise in fourth-quarter net profit yesterday, beating analysts’ forecasts, as impairment allowances more than halved.
ADCB, nearly 60-percent owned by the Abu Dhabi government, reported a net profit of Dh879m ($239.5m) for the three months to December 31, it said in a statement. That compares with a profit of Dh628m in the prior-year period.
Five analysts polled by Reuters had estimated an average fourth quarter profit of Dh783.50m for the quarter.
Banks in the United Arab Emirates have reported strong growth in earnings in recent quarters thanks to an overall recovery in the Gulf state’s economy and lower provisions arising from a reduction in problem loans. ADCB is the first major lender in Abu Dhabi to announce 2013 results. Profit for full year 2013 was Dh3.37bn compared with Dh2.74bn in 2012. Loan impairment allowances dropped sharply to Dh198m in the fourth-quarter compared to Dh402m in the year ago period, ADCB said.
Reuters
