ADCB signed an agreement to acquire a portfolio of about 1,000 mortgages from Abu Dhabi Finance. Chris Whiteoak / The National
ADCB signed an agreement to acquire a portfolio of about 1,000 mortgages from Abu Dhabi Finance. Chris Whiteoak / The National
ADCB signed an agreement to acquire a portfolio of about 1,000 mortgages from Abu Dhabi Finance. Chris Whiteoak / The National
ADCB signed an agreement to acquire a portfolio of about 1,000 mortgages from Abu Dhabi Finance. Chris Whiteoak / The National

ADCB delivers 'resilient' performance despite testing times


Sarmad Khan
  • English
  • Arabic

Abu Dhabi Commercial Bank, the UAE’s third-largest lender, delivered a 'resilient' performance amid testing times and its long-term growth fundamentals remain solid, executives said, as the bank reported a 4 per cent drop in the fourth quarter net income.

Profit for the three months to the end of December 31, declined to Dh1.01 billion ($275.2 million), the bank said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.

The results was inline with Egyptian investment bank EFG Hermes' estimates as "higher revenue and lower opex [operating expenses] compensated for higher-than-expected provisioning".

Quarterly net income fell primarily on account of higher impairment charges, climbing 3 per cent to Dh938m. Operating income for the period dropped 7 per cent to Dh3.06bn.

"At a time when stable and powerful institutions are needed to support our businesses through unpredictable challenges, I am pleased to report that ADCB remained resilient during a challenging year," Ala'a Eraiqat, the lender's group chief executive, said.

“In testing times, ADCB has drawn on its strengths – a robust balance sheet, disciplined governance and a high-performance culture – to navigate the complex issues raised by the global pandemic, softening global economic activity and low oil prices,” Khaldoon Al Mubarak, chairman of the ADCB board, said.

The lender, which has embarked on a five-year strategy, has a commitment to governance that has helped it through successive market cycles, Mr Al Mubarak added.

“As the UAE takes prudent measures to establish a solid platform for a broad recovery, ADCB is in a strong position to play a key role in delivering the country’s economic ambitions in the coming years.”

Lenders globally are facing headwinds as operating conditions deteriorate and provisions for bad loans rise amid an increase in defaults. Profit margins are under pressure as interest rates remain low amid the pandemic-induced economic slowdown.

The lender on Sunday also reported full year profit of 3.81bn, down 27 per cent from Dh5.24bn in 2019. Impairment charges for NMC Health Group, financial services firm Finablr and its associated companies, as part of the bank’s “prudent approach to provisioning”, weighed down its bottom line.

Impairment allowances climbed to Dh3.99bn at the end of last year, rising from Dh2.66bn reported for 2019. Full-year operating profit before impairment allowances held steady at Dh7.95bn despite macroeconomic challenges.

The lender, which completed its three-way merger with Union National Bank and Al Hilal Bank last April, said total integration costs incurred – excluding capital expenditure – reached Dh545m, “well below the budgeted Dh980m”. It recorded integration-related expenses of Dh153m in 2020, after reversing Dh74m of charges in the fourth quarter of last year.

The lender said it also adjusted its operating model to account for “changing customer demand and behaviour”, with strong penetration of digital banking services. It reduced its branch network to pre-merger levels of 54 locations in the UAE, from 73 branches in the second quarter of 2020, and from a peak of 127 when it merged with UNB in May 2019.

“We also continued to capture significant merger efficiencies, upgrading our final run-rate synergy target to Dh1bn from the original aim of Dh615m, while introducing additional cost optimisation measures,” Mr Eraiqat said.

“As a result, operating expenses excluding integration costs decreased by 11 per cent in 2020 and the cost-to-income ratio improved by 190 basis points to 35.1 per cent.”

On Monday, the lender appointed Sheikh Zayed Bin Suroor Al Nahyan to the board, replacing Abdulla Al Mutawa, who resigned after 24 years as an ADCB board member.

During his tenure at the bank, Mr Al Mutawa has "contributed significantly to the development of ADCB into a top-tier banking group", Mr Al Mubarak said.

SHADOWS%20AND%20LIGHT%3A%20THE%20EXTRAORDINARY%20LIFE%20OF%20JAMES%20MCBEY
%3Cp%3EAuthor%3A%20Alasdair%20Soussi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20300%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Scotland%20Street%20Press%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20December%201%3C%2Fp%3E%0A
Two products to make at home

Toilet cleaner

1 cup baking soda 

1 cup castile soap

10-20 drops of lemon essential oil (or another oil of your choice) 

Method:

1. Mix the baking soda and castile soap until you get a nice consistency.

2. Add the essential oil to the mix.

Air Freshener

100ml water 

5 drops of the essential oil of your choice (note: lavender is a nice one for this) 

Method:

1. Add water and oil to spray bottle to store.

2. Shake well before use. 

Britain's travel restrictions
  • A negative test 2 days before flying
  • Complete passenger locator form
  • Book a post-arrival PCR test
  • Double-vaccinated must self-isolate
  • 11 countries on red list quarantine

     
Pros%20and%20cons%20of%20BNPL
%3Cp%3E%3Cstrong%3EPros%3C%2Fstrong%3E%0D%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EEasy%20to%20use%20and%20require%20less%20rigorous%20credit%20checks%20than%20traditional%20credit%20options%0D%3C%2Fli%3E%0A%3Cli%3EOffers%20the%20ability%20to%20spread%20the%20cost%20of%20purchases%20over%20time%2C%20often%20interest-free%0D%3C%2Fli%3E%0A%3Cli%3EConvenient%20and%20can%20be%20integrated%20directly%20into%20the%20checkout%20process%2C%20useful%20for%20online%20shopping%0D%3C%2Fli%3E%0A%3Cli%3EHelps%20facilitate%20cash%20flow%20planning%20when%20used%20wisely%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3ECons%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EThe%20ease%20of%20making%20purchases%20can%20lead%20to%20overspending%20and%20accumulation%20of%20debt%0D%3C%2Fli%3E%0A%3Cli%3EMissing%20payments%20can%20result%20in%20hefty%20fees%20and%2C%20in%20some%20cases%2C%20high%20interest%20rates%20after%20an%20initial%20interest-free%20period%0D%3C%2Fli%3E%0A%3Cli%3EFailure%20to%20make%20payments%20can%20impact%20credit%20score%20negatively%0D%3C%2Fli%3E%0A%3Cli%3ERefunds%20can%20be%20complicated%20and%20delayed%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ECourtesy%3A%20Carol%20Glynn%3C%2Fem%3E%3C%2Fp%3E%0A
If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

Movie: Saheb, Biwi aur Gangster 3

Producer: JAR Films

Director: Tigmanshu Dhulia

Cast: Sanjay Dutt, Jimmy Sheirgill, Mahie Gill, Chitrangda Singh, Kabir Bedi

Rating: 3 star

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
How to increase your savings
  • Have a plan for your savings.
  • Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
  • Decide on a financial goal that is important to you and put your savings to work for you.
  • It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings. 

- Carol Glynn, founder of Conscious Finance Coaching

 

 

MATCH INFO

Jersey 147 (20 overs) 

UAE 112 (19.2 overs)

Jersey win by 35 runs

The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Mubadala World Tennis Championship 2018 schedule

Thursday December 27

Men's quarter-finals

Kevin Anderson v Hyeon Chung 4pm

Dominic Thiem v Karen Khachanov 6pm

Women's exhibition

Serena Williams v Venus Williams 8pm

Friday December 28

5th place play-off 3pm

Men's semi-finals

Rafael Nadal v Anderson/Chung 5pm

Novak Djokovic v Thiem/Khachanov 7pm

Saturday December 29

3rd place play-off 5pm

Men's final 7pm

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

The specs: 2018 Volkswagen Teramont

Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

2018 ICC World Twenty20 Asian Western Regional Qualifier

Saturday results
Qatar beat Kuwait by 26 runs
Bahrain beat Maldives by six wickets
UAE beat Saudi Arabia by seven wickets

Monday fixtures
Maldives v Qatar
Saudi Arabia v Kuwait
Bahrain v UAE

* The top three teams progress to the Asia Qualifier

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

BUNDESLIGA FIXTURES

Saturday

Borussia Dortmund v Eintracht Frankfurt (5.30pm kick-off UAE)

Bayer Leverkusen v Schalke (5.30pm)

Wolfsburg v Cologne (5.30pm)

Mainz v Arminia Bielefeld (5.30pm)

Augsburg v Hoffenheim (5.30pm)

RB Leipzig v Bayern Munich (8.30pm)

Borussia Monchengladbach v Freiburg (10.30pm)

Sunday

VfB Stuttgart v Werder Bremen  (5.30pm)

Union Berlin v Hertha Berlin (8pm)

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Springsteen: Deliver Me from Nowhere

Director: Scott Cooper

Starring: Jeremy Allen White, Odessa Young, Jeremy Strong

Rating: 4/5

The specs

Engine: Turbocharged four-cylinder 2.7-litre

Power: 325hp

Torque: 500Nm

Transmission: 10-speed automatic

Price: From Dh189,700

On sale: now

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"