ABU DHABI Oct 25 Abu Dhabi Commercial Bank
, the fourth largest bank in the UAE by market value,
nearly doubled its third-quarter net profit on Tuesday, beating
analysts forecasts, helped by lower impairment provisions and
higher net interest income.
ADCB, 58-percent owned by the government of Abu Dhabi,
posted a net profit of 607.6 million dirhams ($165.5 million) in
the third quarter, compared with 317.7 million dirhams in the
year earlier period, the bank said in a statement.
Analysts polled by Reuters earlier this month forecast an
average third-quarter net profit of 461.17 million dirhams.
"Our disciplined approach to balance sheet and capital
management resulted in significant improvement in our liquidity
levels and strengthened funding profile. For the quarter,
funding costs were at their lowest level," Deepak Khullar, chief
financial officer said in the statement.
Net impairments allowances booked in third quarter was 514
million dirhams, down 22 percent over the same period last year.
Year to date net impairments stood at 1.84 billion dirhams, 30
percent lower over last year, the bank said.
Net interest and Islamic finance income grew to 1.33 billion
dirhams in third quarter compared with 877 million dirhams in
the same period last year.
ADCB gave out a $1.9 billion loan to sovereign fund Aabar's
parent International Petroleum Investment Co (IPIC) to finance
Aabar's purchase of ADCB's 25-percent stake in RHB Capital
, sources told Reuters earlier this month.
ADCB shares were halted for trading on the Abu Dhabi bourse
Tuesday pending announcement of results. They have risen 32
(Reporting by Stanley Carvalho, Editing by Dinesh Nair)