ADCB net profit jumps 8% to AED1.1bn in Q1

ABU DHABI / Agencies

Abu Dhabi Commercial Bank (ADCB) reported on Sunday AED1.1 billion in net profit attributable to equity shareholders, marking an
8 percent increase from the AED1.02 billion recorded in the same quarter of 2016.
The bank said the rise in profits was driven by healthy volumes and a strong non-interest income combined with a well-managed cost base.
Total net interest and Islamic financing income gained almost 4 percent to AED1.63 billion in the quarter versus AED1.57 billion in the same period last year. Impairment allowances fell almost 10 percent to AED386 million in the first three months of the year from AED352 million in the same period last year.
Alaa Eraiqat, board member and group chief executive officer of ADCB, said the bank saw a good start to the year, with top and bottom line growth in the first quarter.
Our stringent cost controls to drive efficiency across the bank resulted in a significant improvement in our cost-to-income ratio year-on-year. As a highly disciplined bank, we continue to take measures to address the prevailing economic conditions with a rigorous risk management and cost containment, he added.
Commenting on the bank’s performance Ala’a Eraiqat, Member of the Board and Group Chief Executive Officer, said: “The Bank had a very good start to the year, reporting strong top and bottom line growth for the first three months of 2017. Our ROE and CAR continued to be at industry leading levels, while we saw strong underlying performance from each of our businesses. Our stringent cost controls to drive efficiency across the Bank resulted in a significant improvement in our cost to income ratio year on year. As a highly disciplined bank, we continue to take measures to address the prevailing economic conditions with rigorous risk management and cost containment.
“Our balance sheet remains resilient as we continue to grow loans and deposits, attracting customer deposits faster than the industry. This a reflection of our commitment to our strategic pillars to maintain a strong liability base and to fund future loan growth from customer deposits.”