As a result of higher fee income and lower provisioning
Abu Dhabi Commercial: 3.8 billion dirhams, net profit in 9 months
Non-interest income increased by 19%.
From the source
Alaa Erekat: "The Bank has provided new credit facilities of 28 billion dirhams for targeted economic sectors, despite the challenges."
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Abu Dhabi Commercial Bank announced yesterday its financial results for the first nine months of 2021.
The bank revealed an increase in net profits during that period, as a result of the increase in fee income, an improvement in the cost-to-income ratio, and a decrease in general provisions.
According to the main indicators of financial performance, compared to the first nine months of 2020, the bank’s net profit amounted to 3,800 billion dirhams, an increase of 36%, while the net interest income amounted to 6,614 billion dirhams, a decrease of 11%.
Non-interest income increased by 19% to reach AED 2.369 billion, while operating expenses decreased by 9% to reach AED 3.129 billion.
The value of provisions amounted to 1.978 billion dirhams, a decrease of 35%.
Third quarter
Abu Dhabi Commercial confirmed strong financial performance for the third quarter of 2021, with higher fee income and lower costs, which led to an improvement in the cost-to-income ratio.
According to the main indicators of financial performance for the third quarter, net profits amounted to 1.276 billion dirhams for the third quarter of 2021, a decrease of 7% compared to the third quarter of 2020 and by 9% compared to the second quarter of 2021.
In turn, operating expenses decreased to 1,013 billion dirhams, by 8%, compared to the third quarter of 2020, and by 4% compared to the second quarter of 2021.
Loans and deposits
The financial results showed that "Abu Dhabi Commercial" recorded a growth in the loan portfolio, and an increase in customers' deposits in current and savings accounts.
Customers' deposits in current and savings accounts increased by 18.9 billion dirhams during the first nine months of 2021, and by 4.5 billion dirhams, during the third quarter of 2021, to reach 146.4 billion dirhams.
The total customer deposits also increased by 2.1%, compared to the second quarter of 2021, and by 1.7%, compared to the end of 2020, to reach 255.8 billion dirhams.
strong performance
Abu Dhabi Commercial Bank Group CEO, Alaa Erekat, said, “The bank maintained its strong performance, during the first nine months of 2021, as the return on average equity during this period reached 11%, and net profits increased by 36%, despite Prevailing low interest rates.
He added, "Despite the economic challenges, the bank was able to provide new credit facilities worth 28 billion dirhams for targeted economic sectors, in line with its five-year business growth strategy, while the repayment of some companies' loans has reduced the risks of credit concentration in certain sectors such as the real estate sector."
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