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Tue 16 Oct 2012 05:34 PM

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Abu Dhabi's ADIB posts 3% rise in Q3 net profit

UAE's largest sharia-compliant lender says net income totalled $89.4m in third quarter

Abu Dhabi's ADIB posts 3% rise in Q3 net profit
Abu Dhabi Islamic Bank

Abu Dhabi Islamic Bank, the largest sharia-compliant lender by market value in the UAE, posted a three percent rise in third-quarter net profit on Tuesday, ahead of analyst expectations.

The bank said it made a profit of AED328.5m ($89.4m) compared to AED319.1m in the same period last year, it said in a statement.

Two analysts polled by Reuters had forecast an average profit of AED304m.

Net revenue rose 12.1 percent to AED924.1m, from AED824.6m in the same quarter last year.

Total credit provisions and impairments stood at AED958.5m at the end of September, compared to the AED938.9m recorded at the same point last year.

However, ADIB repeated concerns raised in its second-quarter earnings that growth for the rest of the year would be impacted by the negative global economic environment, adding slow loan growth was also hampering its profitability.

"Of equal concern is the continued compression of credit spreads triggered by higher competition among banks who are trying to grow their loans and advances while the market aggregate shows a low growth rate for the market as a whole," said Tirad Al Mahmoud, chief executive of ADIB.

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