ADCB reports 3% rise in fourth quarter operating income

The bank reports a net profit of Dh1.04bn during the quarter

ABU DHABI.19th April.2008. Abu Dhabi Commercial Bank(ADCB) HQ, Abu Dhabi. Stephen Lock  /  The National. FOR ARCHIVE

Abu Dhabi Commercial Bank, which merged with Union National Bank and subsequently acquired Al Hilal Bank, reported a 3 per cent rise in fourth quarter operating income due to higher non-interest income.

Operating income for the three months to December 31 jumped to Dh3.2 billion, the lender said in a statement to the Abu Dhabi Securities Exchange, where its shares trade. Non-interest income for the period climbed 31 per cent to Dh583 million and operating expenses dropped 2 per cent to Dh1.28bn.

Net profit, on the other hand, slid 16 per cent to Dh1.04bn due to higher impairment charges.

Last year "was a transformational year ... the merger with Union National Bank and subsequent acquisition of Al Hilal Bank provided the enlarged group with the scale and efficiency required for a major UAE financial institution", said Eissa Al Suwaidi, chairman of ADCB.

“The Bank, which now serves over 1 million customers, benefits from resilience and scale necessary to navigate continued challenges and the financial strength to take advantage of new growth opportunities,” he added.

The board of directors recommended a cash dividend of Dh0.38 per share, translating to a pay out of Dh2.644bn, equivalent to 50 per cent of net profit.