Abu Dhabi Commercial Bank, or ADCB, reported that its earnings rose 16 per cent year-on-year to Dh1.19 billion on stronger non-interest income in the fourth quarter. The third-biggest lender by assets showed lower expenditures and impairment allowance, with performance in deposits growing nine per cent and loans 14 per cent year-on-year. Overall earnings grew 17 per cent year-on-year to Dh4.92 billion in 2015, as operating income was up 10 per cent to Dh8.260 billion, with net interest and Islamic financing income up 11 per cent at Dh6.206 billion and non-interest income up six per cent at Dh2.055 billion. Net fees and commission income was up 16 per cent at Dh1.438 billion, the lender said in a regulatory filing to the Abu Dhabi Securities Exchange. The lender reported net loans and advances increased nine per cent year-on-year to Dh154 billion as at December 31, 2015. Deposits rose 14 per cent year-on-year to Dh144 billion while total assets grew 12 per cent to a record Dh228 billion. "2015 was another record year for the bank and our ability to produce such accomplishments in an environment buffeted by lower oil prices and other economic headwinds reflects our differentiation," ADCB chairman Eissa Mohamed Al Suwaidi said. "We continue to deliver strong results and all of our businesses have made a significant contribution to the bottom line, setting records in many key measures," group chief executive officer Ala'a Eraiqat said. "We have built a robust capital structure. We run a stable and resilient business and strive to create a sustainable liability structure supported by stable and cost-effective current and savings account deposits," he added. "Our funding approach remains disciplined with any future growth funded by an increase in customer deposits." Islamic banking continued to be a key driver of growth, with Islamic financing assets up 32 per cent and Islamic deposits up nine per cent over 2014. "We remain selective about the sectors to which we lend and remain prudent about our provisioning. As at December 31, 2015, our provision coverage ratio was 128.5 per cent," Eraqat added. Al Suwaidi said that 2016 is expected to be a more challenging year for financial services globally. He said "the bank will continue to monitor conditions closely and will take action as necessary". "We are confident that ADCB is well-positioned and going forward we will continue to strengthen the elements of the 'ADCB Difference' by building on our proven strategy, doing more to serve our customers," the CEO said. The board of directors has recommended a cash dividend of 45 fils per share. - haseeb@khaleejtimes.com
Abu Dhabi Commercial Bank (ADCB) - 4Q 2015 net profit of AED 1.19bn ($324m), up 16% YoY, helped by higher revenue and lower impairments.