Abu Dhabi Commercial Bank announced yesterday its financial results for the first half of this year, achieving a net profit of 1.436 billion dirhams, while net income from interest and Islamic financing operations amounted to 5.136 billion dirhams, a decrease of 2% compared to the same period last year, despite From the slowdown in growth in the business environment and the decrease in the size of the loan portfolio resulting from the repayment by some of the major companies of their loans by the end of June 2020.
The bank said in a statement, that the interest cost improved by 37% to reach 2.783 billion dirhams at the end of the first half of 2020, as a result of the significant improvement in the cost of funds resulting from the increase in current account balances and savings accounts and lower reserve requirements and prevailing interest rates.
Operating profits (before allocating provisions) increased by 2% from what they were at the end of the same period last year, to reach 4.066 billion dirhams, while operating expenses (including merger costs) decreased by 12% from what they were at the end of the same period of last year to reach 2.351 billion Dirham during the first half of 2020.
The value of provisions for the first half of this year was 2.551 billion dirhams, compared to 1.174 billion dirhams at the end of the first half of last year.
Customer deposits in current and savings accounts increased by 12% from what they were at the end of last year to reach 114 billion dirhams as of 30 June 2020, to constitute 46% of total customer deposits compared to 39% from what they were at the end of last year.
Abu Dhabi Commercial Bank Group Chairman Khaldoun Khalifa Al Mubarak said, “The bank has maintained its stability and stable performance amid the challenging operational environment that prevailed in the markets during the first half of this year, as the (Covid-19) pandemic and low oil prices caused a decline in activity. Economic in the Emirates and around the world ». He added, "Thanks to its strong balance sheet and disciplined management of risks and financial resources, during this exceptional period, the bank maintained the position that would qualify it to achieve the interests of clients, employees and shareholders."