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UAE lender ADCB’s Q4 net profit surges, shares rise
Q4 earnings jump 38.5 pct, misses forecasts but shares climb; Provisions down, interest and Islamic finance income up
January 28, 2012 1:36 by Reuters
Abu Dhabi Commercial Bank posted a 38.5 percent rise in fourth-quarter net profit, helped by lower impairment provisions and higher interest income, sparking a late rally in the lender’s stock.
ADCB, the third largest lender in Abu Dhabi by market value, posted a net profit of 514 million dirhams ($139.94 million) in the fourth quarter, compared with 371 million dirhams a year earlier, a bank statement said.
Analysts polled by Reuters forecast an average fourth-quarter net profit of 570 million dirhams.
Reuters earlier calculated a quarterly net profit of 529 million dirhams based on the lender’s previous financial statements.
Impairment allowances for the fourth quarter fell to 549 million dirhams from 647 million dirhams a year earlier, the bank said in the statement to the Abu Dhabi bourse.
On the other hand, net interest and Islamic finance income rose to 1.39 billion dirhams from 1.03 billion dirhams.
The lender, which sold its stake in Malaysia’s RHB Capital last year, saw its full-year net profit surge to 3.05 billion dirhams versus 390.6 mln dirhams for 2010.
The full year profit growth was aided by a 1.31 billion gain from the sale of the RHB stake and a drop in impairment allowances on loans and advances. ADCB said impairments fell to 2.08 billion dirhams from 2.86 billion dirhams in 2010.
ADCB was the frontrunner to buy the United Arab Emirates operations of British lender Lloyds Banking Group, sources told Reuters earlier this month.
Last June, ADCB sold its 25 percent stake in RHB to Abu Dhabi fund Aabar Investments for $1.91 billion.
The lender’s shares rose 5.7 percent to 3.02 dirhams on the bourse after the results were announced. ($1 = 3.6730 UAE dirhams) (Reporting by Dinesh Nair; Editing by Amran Abocar and Firouz Sedarat) *image from alrroya.com