April 24, 2012 / 12:26 PM / in 5 years

UPDATE 1-ADCB Q1 net profit up 38 pct, beats estimates

2 Min Read

(Adds details)

* Q1 profit 802 mln dirhams

* Provisions down 28 percent in Q1

* Loans, assets growth fall slightly

ABU DHABI, April 24(Reuters) - Abu Dhabi Commercial Bank the emirate's third-largest lender by market value, posted a 38-percent rise in first quarter net profit on Tuesday due to lower impairments and higher interest income.

ADCB posted a net profit of 802 million dirhams ($218.52 million) in the first quarter, compared with 583 million dirhams a year earlier, ahead of analysts' forecasts.

Analysts polled by Reuters forecast an average first-quarter net profit of 641.25 million dirhams.

Impairment allowances for the first quarter totalled 287 million dirhams, down 28 percent from 399 million dirhams in the prior year period, the statement said.

On the other hand, net interest and Islamic finance income rose to 1.19 billion dirhams from 926 million a year ago.

Deposits were up 4 percent in the first quarter totalling 114.5 billion dirhams but loans growth was nearly flat at 130.46 billion dirhams compared to end-December 2011.

ADCB's total assets fell slightly to 182.91 billion dirhams in first quarter from 183.72 billion dirhams as of end December 2011.

In late March, ADCB agreed to provide a $500 million loan to Abu Dhabi investment fund Mubadala in exchange for a 14 percent stake in indebted developer Aldar Properties

The lender sold its stake in Malaysia's RHB Capital last year to Abu Dhabi fund Aabar Investments for $1.91 billion..

Earlier on Tuesday, ADCB's rival National Bank of Abu Dhabi posted a 12-percent rise in quarterly profit, beating analysts' forecasts, thanks to lower provisions and deposit growth.

$1 = 3.6730 UAE dirhams Reporting By Stanley Carvalho

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