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119171
Wed, 04/28/2010 - 14:09
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https://oananews.org//node/119171
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ADCB reports first quarter net profit of Dh225 million
Abu Dhabi, April 28, 2010 (WAM)- Abu Dhabi Commercial Bank (ADCB) today reported net profit of Dh225 million, increasing by 119 per cent quarter on quarter and down by 36 per cent year on year. Pre-provision profits remained robust at Dh908 million, an increase of 44 per cent year on year and increase of 44 per cent quarter on quarter.
Continued focus on managing the cost base efficiently resulted in a 4 per cent drop in operating expenses over Q1'09, with cost to income ratio at 28.5 per cent compared to 37.2 per cent in Q1'09.
Customer deposits aggregated Dh90 billion, up 4.4 per cent from 31 December 2009 outgrowing net customer loans which aggregated Dh117 billion, up 0.9 per cent from 31 December 2009. The Bank's focus on liability gathering and controlled lending resulted in a 5 per cent drop in the Bank's loan to deposit ratio from 135 per cent in December 2009 to 130 per cent in March 2010.
Speaking on the results for the three month period ending March 31st, 2010, ADCB's Chief Executive Officer and Member of the Board, Ala'a Eraiqat, said "The Bank registered another strong quarter with pre-provision profits of Dh908 million.
"This was achieved as a result of our strong core banking franchise, strength of our client relationships, innovative products and the dedication of our employees. However, robust top line numbers were impacted by significant impairment charges on the loan and investment book in line with our prudent and disciplined approach to risk management. This is in line with our medium term strategy of the bank and our continuation of building a stronger ADCB for the future and wish for the best yet prepare for the worse," he added.
Deepak Khullar, Group Chief Financial Officer commented: "Our increased focus on balance sheet management has resulted in 4.4% deposit growth this quarter and a reduction in our loans to deposit ratio from 135 per cent to 130 per cent. The top line revenue growth is very encouraging and the net interest margin improved 32 bps to 2.59 per cent year on year and non-interest income improved by 33 per cent year on year. A disciplined approach to cost management and improved operating income resulted in a lower cost to income ratio of 28.5 per cent."
Continued focus on managing the cost base efficiently resulted in a 4 per cent drop in operating expenses over Q1'09, with cost to income ratio at 28.5 per cent compared to 37.2 per cent in Q1'09.
Customer deposits aggregated Dh90 billion, up 4.4 per cent from 31 December 2009 outgrowing net customer loans which aggregated Dh117 billion, up 0.9 per cent from 31 December 2009. The Bank's focus on liability gathering and controlled lending resulted in a 5 per cent drop in the Bank's loan to deposit ratio from 135 per cent in December 2009 to 130 per cent in March 2010.
Speaking on the results for the three month period ending March 31st, 2010, ADCB's Chief Executive Officer and Member of the Board, Ala'a Eraiqat, said "The Bank registered another strong quarter with pre-provision profits of Dh908 million.
"This was achieved as a result of our strong core banking franchise, strength of our client relationships, innovative products and the dedication of our employees. However, robust top line numbers were impacted by significant impairment charges on the loan and investment book in line with our prudent and disciplined approach to risk management. This is in line with our medium term strategy of the bank and our continuation of building a stronger ADCB for the future and wish for the best yet prepare for the worse," he added.
Deepak Khullar, Group Chief Financial Officer commented: "Our increased focus on balance sheet management has resulted in 4.4% deposit growth this quarter and a reduction in our loans to deposit ratio from 135 per cent to 130 per cent. The top line revenue growth is very encouraging and the net interest margin improved 32 bps to 2.59 per cent year on year and non-interest income improved by 33 per cent year on year. A disciplined approach to cost management and improved operating income resulted in a lower cost to income ratio of 28.5 per cent."
