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Tue 2 Aug 2011 05:21 PM

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ADCB Q2 net profit boosted by RHB stake sale

ADCB books a $357m gain from sale, helping push profits to AED1.34bn n

ADCB Q2 net profit boosted by RHB stake sale

Abu Dhabi Commercial Bank (ADCB) , the UAE's fourth largest lender by market capitalisation, swung to a second-quarter net profit on Tuesday as it booked a $357m gain from the sale of its quarter-percent stake in Malaysia's RHB Capital .

The lender, one of the region's most exposed banks to indebted conglomerate Dubai World , reported a net profit of AED1.34bn ($364.9m) in the second quarter, compared with a loss of AED531m for the previous year, the bank said in a statement on Tuesday.

Analysts polled by Reuters had estimated an average second quarter profit of AED1.31bn for the bank.

ADCB is one of two UAE banks on an informal seven-member coordinating committee negotiating Dubai World's restructuring plan. In June, it sold its stake in Malaysian lender RHB to Abu Dhabi sovereign fund Aabar for 10.80 ringgit per share in a $1.91bn deal.

The bank also said it would convene a shareholders meeting to buy back up to 10 percent of its capital.

Net impairment allowances for the second-quarter stood at AED935m compared with AED1.30bn in the year earlier period. The bank took an additional impairment provision of AED275m for the first half, it said.

ADCB said loans fell 5 percent to AED123bn in the second quarter of 2011 compared to a year ago, while deposits remained flat at AED106.35bn for the same period.

Operating income stood at AED1.42bn in the second quarter versus AED1.12bn a year ago, the statement said.

ADCB shares have risen 50 percent year-to-date. They were halted pending the announcement of results on Tuesday.

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