Abu Dhabi Commercial Bank (ADCB) on Tuesday posted a 16 per cent drop in fourth-quarter profit, in line with analysts' forecasts, as impairments for doubtful loans weighed on its bottom line. The emirate's second-largest bank by assets made a net profit attributable to shareholders of Dh1 billion ($272 million) in the three months to December 31, compared to Dh1.19 billion in the same period a year ago. Impairments booked in the fourth quarter totalled Dh437 million versus Dh110 million a year earlier. Net interest and Islamic financing income was up seven per cent year-on-year in the fourth quarter to Dh1.57 billion. Loans and advances grew to Dh158.5 billion, up eight per cent, while customer deposits totalled Dh155.4 billion, also up eight per cent. ADCB's board proposed a cash dividend of 40 per cent for 2016 compared to 45 per cent in 2015. In November ADCB obtained a $600 million, three-year syndicated loan, according to Wells Fargo, the bank that coordinated the debt transaction. Eissa Mohamed Al Suwaidi, chairman of ADCB, said: "The bank has delivered another year of strong performance particularly in light of the challenges faced by the low oil price environment, tightened liquidity and volatile markets which have impacted the industry. However, the bank's underlying performance and fundamentals remain strong. We have a clear and focused strategy, and we continue to execute against it. In September 2016, the board reviewed and confirmed the bank's strategy. This strategy was devised to build a robust and resilient leader in the UAE financial sector and has proven to be highly effective in that regard." - With inputs from Reuters
A 400 % year - on - year reduction in impairments booked in the fourth quarter to 800 crore ( $ 119 m ) led to a 16 % drop in debt for Abu Dhabi Commercial Bank ( ADCB ) . Despite writing off doubtful loans , the bank made a AED1bn net profit in the fourth quarter , compared with AED1.19bn in the same period last year .