(MENAFN - Khaleej Times) Abu dhabi commercial bank?s profit grew 26 per cent in the first quarter of the year to dh1.
however net profit rose 22 per cent year-on-year. non-interest income was 24 per cent higher in the first quarter to dh520 million while net fees and commission income grew 33 per cent to dh285 million the second biggest lender by assets said in a statement to abu dhabi securities exchange. net impairment allowance charges at dh174 million 12 per cent lower over previous quarter. the lending reported strong capitalisation and liquidity levels capital adequacy ratio at 20.15 per cent and tier i ratio at 15.57 per cent as at march 31 2014.
ala’a eraiqat chief executive officer described the strong performance as “a very good start to the year reporting.”
“all businesses reported a strong performance which demonstrates the underlying strength and diversity of our franchise” the chief executive officer said. ”we are seeing positive signs that the economy is getting stronger and we continue to follow a corporate strategy based on measured growth and discipline. in addition we continue to observe improvements in credit quality reflected in sinificantly lower impairment charges year on year.”
while adcb’s net loans and customer deposits remained stable over the year end the bank reported a significant increase in casa customer deposits which accounted for 46 per cent of total customer deposits compared to 39 per cent as at year end.
deepak khullar group chief financial officer said: “adcb continued to deliver strong financial results in the first quarter of 2014. net interest income was up 10 per cent year on year primarily driven by a 33 per cent reduction in interest expense resulting from lower eibor and the bank’s conscious efforts to focus on growing stable low cost deposits.”
costs remained well controlled growing in line with operating income and we remain comfortable with our cost to income ratio he added.
excluding the one-off gain arising from retirement of hedges in the first quarter of 2013 non-interest income for the first quarter of 2014 reported an increase of 34 per cent year on year at dh520 million. this was achieved by a combination of a significantly higher net fee and commission income and a higher trading income over the previous year.