Abu Dhabi Commercial Bank makes $239m net profit in three months to December 31
Abu Dhabi Commercial Bank (ADCB), the UAE's third largest lender by market value, posted a 40 percent rise in fourth-quarter net profit on Sunday, beating analysts' forecasts, as impairment allowances more than halved.
ADCB, nearly 60 percent owned by the Abu Dhabi government, reported a net profit of AED879 million ($239.5 million) for the three months to December 31, it said in a statement. That compares with a profit of AED628 million in the prior-year period.
Five analysts polled by Reuters had estimated an average fourth quarter profit of AED783.50 million for the quarter.
Banks in the United Arab Emirates have reported strong growth in arnings 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 AED3.37 billion compared with AED2.74 billion in 2012.
Loan impairment allowances - the amount of money set aside to meet loan losses - dropped sharply to AED198 million in the fourth-quarter compared to AED402 million in the year ago period, ADCB said.
The bank proposed a dividend of 30 fils per share, a 50 percent increase to what it paid last year, if the 5 fils per share special dividend paid in 2012 was excluded, the statement said.
Loans and advances grew to AED131.64 billion in 2013, up 7 percent over the previous year, while customer deposits advanced 6 percent to AED115.42 billion last year.
The lender sold a $500 million three-year floating rate bond in the fourth-quarter last year.
ADCB shares did not trade on the Abu Dhabi bourse Sunday. The stock is up 100 percent in the last one year, according to Thomson Reuters data.