Abu Dhabi Commercial Bank (ADCB) posted a 31 percent increase in first-quarter net profit on Tuesday, beating analysts’ forecasts, boosted by strong returns from fees and lending.
It made a net profit attributable to equity shareholders of 1.25 billion dirhams ($340.3 million) in the three months ended March 31, versus 953 million dirhams in the corresponding period of 2014, it said in a statement.
Five analysts polled by Reuters on average forecast net profit for the quarter of 1.08 billion dirhams.
The fourth-largest lender by market value in the United Arab Emirates (UAE) is the fourth bank in the country to report earnings so far this quarter, with all registering double-digit profit growth.
Driving ADCB’s earnings growth was higher fees from corporate and retail banking, which lifted overall net fee and commission income by 32 percent to 375 million dirhams in the first quarter from the corresponding period of last year.
Banks in the UAE have fallen back on fee income growth as tough competition has pressured profit margins in the lending market.
Still, the bank said total net interest and Islamic financing income gained 19 percent to 1.64 billion dirhams over the same time period.
This was aided by a 7 percent year on year increase in total lending, which stood at 141.1 billion dirhams at the end of March.
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