(MENAFN- Emirates News Agency (WAM)) Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the first quarter of 2015 (Q1'15).
Financial highlights Strong top and bottom line growth with a record return on equity and operating income for the quarter (Q1'15 vs. Q1'14) € Net profit up 13% to AED 1.249 bn € Net profit attributable to equity shareholders up 31% to AED 1.248 bn € Record quarterly operating income, up 15% to AED 2.192 bn € Record quarterly net interest income and non-interest income, up 19% and 6% respectively to AED 1.641 bn and AED 551 mn € Net fees and commission income up 32% to AED 375 mn € Record quarterly operating profit, up 17% to AED 1.492 bn € Return on equity of 21.9% compared to 17.0% for Q1'14 Conservatively managed balance sheet with strong CASA (current & savings account) deposits contribution € Net loans and advances increased by 532 mn to AED 141 bn over 31 December 2014 € Deposits from customers increased 2% to AED 128 bn over 31 December 2014 € Advances to stable resources improved to 86.6% from 88.5% as at 31 December 2014 € Low cost CASA deposits comprised 46% of total deposits compared to 45% as at 31 December 2014 Capital and liquidity position continue to be at industry leading levels € Capital adequacy ratio of 19.49% and Tier 1 ratio of 15.73% as at 31 March 2015 € Net lender of AED 18 bn in the interbank markets as at 31 March 2015 Well managed cost base, continued improvement in cost of funds and strong asset quality metrics € Cost to income ratio for the quarter improved to 31.9% compared to 32.9% in Q1'14 € Cost of funds for the quarter improved to 85 bps from 97 bps in Q1'14 € As at 31 March 2015, NPL and provision coverage ratios were 3.2% and 134.1% respectively Commenting on the Bank's performance, Ala'a Eraiqat, Member of the Board and Group Chief Executive Officer, said: "The Bank had a very good start to the year, reporting a record return on equity of 21.9% and a record operating income of AED 2.192 bn for the first quarter in 2015, crossing the AED 2 bn mark in operating income for the first time and delivering a net profit of AED 1.249 bn, up 13% year on year. Excluding income attributable to non-controlling interests, net profit attributable to equity shareholders grew by 31% in Q1'15.
''Our strong results reflect the strength of our franchise and on-going customer demand for our products and services in a challenging and competitive environment, while we continue to pro-actively manage our cost base, in turn driving an improvement in our profitability.
''We continue to focus on sustainable growth by striking a balance between ambition and discipline as we strive to create the most valuable bank in the UAE and a better way to bank for our customers. All of our businesses contributed to these strong set of results reported by the Bank, demonstrating the diversity of our franchise and our dedication to disciplined execution and customer centricity,'' he added.
''We are pleased with our first quarter results and remain positive about future growth. Whilst markets remain competitive, we are confident that with our resilient balance sheet and robust strategic pillars, we can deliver sustainable growth for our customers and shareholders," he concluded.
Deepak Khullar, Group Chief Financial Officer, commented on the results: ''ADCB reported strong top and bottom line growth in the first quarter of 2015. Our capital adequacy ratio continues to be at industry leading levels at 19.49% compared to 21.03% as at 31 December2014, the decline was mainly due to dividend payments in Q1'15. Even with significantly high levels of capital, our businesses have delivered a record return on equity of 21.9%, which is amongst the highest in our peer group.
''Our cost base is efficiently managed, with a cost to income ratio of 31.9% for the quarter and asset quality metrics continue to remain strong, with a provision coverage of 134.1% and cost of risk reported at 60 bps.
Our fee income reported solid growth, up 32% year on year and contributed 68% towards total non-interest income, compared to 55% in Q1'14, demonstrating our commitment to diversify our revenue stream and our increased emphasis on fee income generation across the Bank."
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.