UAE lender ADCB sees Q4 net profit surge

Abu Dhabi Commercial Bank posted a 38.5 percent rise in fourth-quarter net profit, helped by lower impairment provisions and higher interest income, sparking a late rally in the lender's stock.

ADCB, the third largest lender in Abu Dhabi by market value, posted a net profit of AED514m ($139.94m) in the fourth quarter, compared with AED371m a year earlier, a bank statement said.

Impairment allowances for the fourth quarter fell to AED549m from AED647m a year earlier, the bank said in the statement to the Abu Dhabi bourse.

On the other hand, net interest and Islamic finance income rose to AED1.39bn from AED1.03bn.

The lender, which sold its stake in Malaysia's RHB Capital last year, saw its full-year net profit surge to AED3.05bn versus AED390.6m for 2010.

The full year profit growth was aided by an AED1.31bn gain from the sale of the RHB stake and a drop in impairment allowances on loans and advances. ADCB said impairments fell to AED2.08bn from AED2.86bn in 2010.

ADCB was the frontrunner to buy the United Arab Emirates operations of British lender Lloyds Banking Group, sources said earlier this month.

Last June, ADCB sold its 25 percent stake in RHB to Abu Dhabi fund Aabar Investments for $1.91bn. The lender's shares rose 5.7 percent to AED3.02 on the bourse after the results were announced.