ABU DHABI: Abu Dhabi Commercial Bank (ADCB) reported its financial results for the year ended Dec.31, 2012 (FY’12), subject to approval by the UAE Central Bank.
The bank reported a 32 per cent jump in quarterly net profit, beating analysts’ expectations, as the bank made fewer provisions and non-interest income grew. The UAE’s third largest lender by market value posted fourth quarter net profit of Dhs680 million in the three months to Dec.31, up from Dhs514 million in the prior-year period.
The bank’s full-year profit for 2012 stood at Dhs2.81 billion compared with Dhs3.045 billion in the financial year 2011.
Operating profit before impairment allowances stood at Dhs4,526 million, which is up 13 per cent when compared to the same period last year.
Commenting on the Bank’s strong performance, Eissa Al Suwaidi, Chairman of ADCB said, “We are pleased to report a net profit of Dhs2.81 billion. While the economic conditions remained challenging, excluding the non-recurring gain, ADCB’s net profit in 2012 was up 62 per cent compared to Dhs1.731 billion as at Dec.31, 2011. Our strategic pillars and business model provide a solid foundation to implement our objectives and have enabled us to generate steady returns in 2012.”
We remain focused on maximising shareholder value and the Board of Directors has recommended a 25 per cent cash dividend of Dhs1.4 billion, equivalent to 50 per cent of net profit. As per the Bank’s normal dividend distribution strategy of 20 per cent, the additional 5 per cent represents a special pay out as a result of the Bank’s strong capital base and financial performance in 2012.
I would also like to highlight our ongoing efforts to attract, train and retain high caliber national talent across all levels of the Bank and we are proud of the fact that 41 per cent of our staff are UAE nationals.
He also added, “We remain committed to corporate social responsibility and it is an inseparable part of our operations that helps us to accomplish sustainable business success. We have gone over and above the MOU signed with the UAE Nationals Defaulted Debts Settlement Fund and in 2012, the Bank waived 100 per cent of receivables from debt-burdened nationals which totaled Dhs22.7 million for 184 UAE nationals.”
“We also reaffirm our commitment to contribute to the development of the UAE Banking Sector and on behalf of the Board I would also like to extend my gratitude and appreciation to our shareholders, valued customers and the ADCB executive management team and employees.”
Ala’a Eraiqat, Member of the Board and Chief Executive Officer commented on the results, “We are pleased with the steady growth in our operating income and sustainable profitability in 2012.
We continued to focus on maintaining a strong and conservatively positioned balance sheet driven by our strategy, which resulted in an improvement of our loans to deposit ratio from 114.27 per cent in 2011 to 112.80 per cent as at Dec.31, 2012.
“While subdued economic conditions persist, with average loan growth year on year reported at 2.6 per cent across all banks in the UAE and GDP growth projections for UAE reported at 4.0 per cent in 2012 and 2.6 per cent in 2013, our loan book was stable and we continued to deliver strong operating performance, with operating income up 9 per cent in 2012.”
“Net interest income was up 11 per cent driven primarily by an increase in the investment portfolio and cost of funds decline of 33 bps from 2.15 per cent in 2011 to 1.82 per cent in 2012,” Ala’a Eraiqat added.