Abu Dhabi Commercial Bank's quarterly net profit up 32%

Arab World Materials 25 April 2022 17:56 (UTC +04:00)
Abu Dhabi Commercial Bank's quarterly net profit up 32%

Abu Dhabi Commercial Bank (ADCB), the third-largest lender in the United Arab Emirates, on Monday reported a 32% increase in first-quarter profit on higher net fees and commission, Trend reports with reference to Reuters.

The lender reported net profit of 1.483 billion dirhams ($391.55 million) for the three months to March 31, up from 1.121 billion dirhams in the same period last year.

Net fees and commission income was up 10% year on year, mainly attributable to a significant increase in trade finance commission as well as higher loan processing and card-related fees, it said.

Banks in the United Arab Emirates are making a swift recovery in earnings as the economy rebounds from the worst of the COVID-19 pandemic, with oil prices having surged and the Expo world fair having boosted tourism.

"ADCB delivered a solid performance in the first quarter of 2022, reflecting improving economic conditions in the UAE despite ongoing global uncertainty," the group's chief executive, Ala'a Eraiqat, was quoted as saying in a company statement.

The bank has recovered from its exposure to UAE hospital operator NMC, which ran into financial difficulties and went into administration in 2020.

The bank said it received 37.5% of transferrable exit instruments in a $2.25 billion facility issued by NMC's operations in the UAE and Oman following the hospital operator's completion of a debt restructuring process and exit from administration on March 25.

The bank said its impairment charges in the first quarter improved significantly to 294 million dirhams, down 58% from last year on higher recoveries and improved economic conditions.