UAE bank ADCB Q1 profit down, misses forecast

Daily News Egypt
2 Min Read

ABU DHABI: Abu Dhabi Commercial Bank on Tuesday reported a 36 percent drop in first-quarter profit, missing analyst forecasts, after booking provisions against bad loans.

The lender is one of the region’s most exposed banks to indebted conglomerate Dubai World and one of two UAE banks on an informal seven-member coordinating committee negotiating the company’s restructuring plan.

ADCB made a profit of AED 225 million in the first three months of the year versus AED 353.7 million in the same period in 2009.

The bank set aside AED 681 million in impairment charges in the first quarter.

Analysts polled by Reuters had estimated an average first quarter profit of AED 270 million.

Gross loans grew 8 percent in first quarter and deposits increased 23 percent compared to the same period last year, a company statement said.

Record provisions dragged ADCB to a hefty loss in the previous quarter, highlighting the scale of the debt crisis that has hit Dubai.

The bank raised $1 billion in October as the first tranche of its $7.5 billion bond program, and speculation is increasing that ADCB could come to market again in 2010, after a successful transaction by National Bank of Abu Dhabi in March.

Rival National Bank of Abu Dhabi <NBAD.AD> earlier on Tuesday posted a net profit of AED 1.031 billion in first quarter, up 34 percent over the same period last year.

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