• April 29, 2017
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Abu Dhabi Commercial Bank PJSC releases Q1 2017 results

Strong operating performance and disciplined cost management

– Net profit of AED 1.105 billion was 10% higher quarter on quarter and 8% higher year on year, while the Bank ,maintained a strong ROAE of 16.1% and ROAA of 1.60% for the first quarter of 2017

– Operating profit before impairment allowances of AED 1.489 billion was 3% higher quarter on quarter and 8% higher year on year, driven by the Bank’s increased revenues and tightly managed cost base

– Operating income of AED 2.229 billion was 3% higher quarter on quarter and 6% higher year on year, while operating expenses of AED 740 million remained flat year on year, driven by the Bank’s continuous efforts to manage its businesses efficiently. Cost to income ratio for Q1’17 was 33.2% compared to 34.9% in Q1’16, an improvement of 170 basis points year on year

– Total net interest and Islamic financing income of AED 1.631 billion was 4% higher quarter on quarter and year on year, despite the increasing cost of funds reflective of the tighter liquidity in the market. Cost of funds for Q1’17 was 1.45% compared to 1.17% in Q1’16 and 1.49% in Q4’16.

– Non-interest income of AED 598 million was stable quarter on quarter and 11% higher year on year, on account of higher trading income, and an increase in fees and commission income. Net trading income of AED 166 million was up 36% year on year, while net fees and commission income of AED 373 million was up 4% year on year Resilient balance sheet, significant increase in CASA deposits

– Total assets grew 2% to AED 264 billion and net loans and advances to customers increased by 1% to AED 160 billion over 31 December 2016. As compared to 31 March 2016, total assets and net loans and advances to customers grew 14% and 6% respectively year on year

– Deposits from customers increased 4% to AED 162 billion over 31 December 2016 and 10% over 31 March 2016. Low cost current and savings account (CASA) deposits increased 10% to AED 71 billion over 31 December 2016 and comprised 44% of total deposits

– Customer deposit growth outpaced loan growth, resulting in an improved loan to deposit ratio of 98.4% Healthy asset quality indicators, committed to maintaining a disciplined risk profile
– As at 31 March 2017, NPL and provision coverage ratios were 2.7% and 132.5% respectively

– Cost of risk for the first quarter of 2017 was 0.78% compared to 0.83% in 2016

– Collective impairment allowances were 1.80% of credit risk weighted assets, above the minimum 1.5% stipulated by the UAE Central Bank Capital and liquidity position continue to remain strong

– Capital adequacy ratio of 17.83% and Tier 1 ratio of 14.55% as at 31 March 2017, post dividend payment of AED 2.1 billion in Q1’17

– Liquidity coverage ratio of 116% compared to a minimum ratio of 80% prescribed by UAE Central Bank

– Net lender of AED 20.6 billion in the interbank markets and a strong liquidity ratio of 25.7% as at 31 March 2017

Re-disseminated by The Asian Banker