Abu Dhabi Comm Bnk ADCB Management & Analysis Report

  Abu Dhabi Comm Bnk - ADCB Management & Analysis Report

RNS Number : 1019Q
Abu Dhabi Commercial Bank PJSC
01 November 2012




                                      



                                      

                    ABU DHABI COMMERCIAL BANK PJSC REPORTS

                                      

                 NINE MONTH 2012 NET PROFIT OF AED 2,131 MN,

                                      

                       OPERATING INCOME OF AED 4,985 MN





Abu Dhabi  Commercial Bank  PJSC ("ADCB"  or the  "Bank") today  reported  its 
financial results for the nine month period to 30 September 2012 ("9M'12").



Further analysis of ADCB's results as at 30 September 2012:



              9Monthfinancialreview Quarterlytrends
AED million                                   Change %                                Change %
Income
statement              9M'12         9M'11           YoY       Q3'12          Q3'11          YoY
highlights
Total net
interest and
Islamic                3,909         3,296            19       1,331          1,335          (0)
financing
income
Non -
interest               1,076         1,150           (7)         301            364         (17)
income
Operating              4,985         4,447            12       1,632          1,699          (4)
income
Operating            (1,559)       (1,515)             3       (516)          (528)          (2)
expenses
Operating
profit before          3,426         2,931            17       1,115          1,171          (5)
impairment
allowances
Net
impairment           (1,308)       (1,848)          (29)       (529)          (514)            3
allowances
Net gain on
sale of                    -         1,314             -           -              -            -
investment in
associate
Share of
(loss)/profit             16           168          (90)           9            (8)        (204)
of associates
Overseas
income tax               (4)          (34)          (88)           0           (35)        (101)
expense
Net profit
for the                2,131         2,531          (16)         595            613          (3)
period
Balance sheet                                 YTD Change                        QoQ
highlights      September'12   December'11             %     June'12
                                                                           Change %
Total assets         181,891       183,726           (1)     180,797              1
Net Loans            123,777       124,755           (1)     123,463            0 
Deposits from        108,988       109,171           (0)     111,247            (2)
customers*
Ratios (%)                                    Change bps                 Change bps
CAR                    22.53         22.51             2       22.34             19
Tier I ratio           16.22         15.90            32       16.04             18
LTD*                  113.57        114.27          (70)      110.98            259


* Deposits from customers were reclassified in June'12 to show Euro commercial
paper separately



Total operating income



· Total operating income for  the first nine months  of 2012 was AED  4,985 
mn, an increase of 12% year on  year. Total operating income in Q3'12 at  AED 
1,632 mn, declined 4% over Q3'11 due to lower non-interest income reported  in 
Q3'12.

· Total net interest and Islamic financing income for the first nine months
of the year in 2012 was AED 3,909 mn, an increase of 19% over 9M'11 which  was 
mainly attributed  to the  Bank's  continued improved  funding profile.  On  a 
quarterly basis at AED 1,331 mn, Q3'12 net interest income remained flat  over 
Q3'11. Interest expenses at AED 2,009 mn in 9M'12 recorded an improvement  of 
17% over 9M'11, primarily as a result  of carefully managed cost of funds  and 
lower EIBOR. Cost of funds for the first nine months of 2012 were reported at
1.88%, an improvement of  41 bps over the  corresponding period in 2011.  The 
improving trends increased the net interest margin to 3.30% in 9M'12  compared 
to 2.93% over 9M'11.

· Non-interest income for the first nine months ended 30 September 2012 was
at AED 1,076 mn,  7% lower over  9M'11, which was primarily  due to lower  net 
trading income in  9M'12. Net fees  and commission income  increased 2%  over 
9M'11.







Cost to income ratio



· Operating expenses were  carefully managed at AED  1,559 mn in the  first 
nine months of 2012, 3% higher  compared to the corresponding period in  2011, 
whilst cost to income  ratio improved to  31.2% in 9M'12  from 32.8% in  9M'11 
driven by proactive  cost management.  On a quarterly  basis at  AED 516  mn, 
Q3'12 operating expenses reported an improvement  of 2% over Q3'11 with  staff 
costs remaining flat year on year.







Asset quality



· As at 30 September  2012, the NPL ratio  was 5.8% and provision  coverage 
was 75.8% compared to 4.6% and 80.0% as at 31 December 2011.

· As at 30 September 2012, cost of risk improved to 1.22% compared to 1.77%
as at 31 December 2011, an improvement of 55 bps year to date.

· Portfolio impairment  allowance balance  was AED  2,214 mn  and 1.68%  of 
credit risk  weighted  assets  as  at 30  September  2012  (UAE  Central  Bank 
directive requires banks  to increase  the level of  collective provisions  to 
1.50% of credit risk weighted assets by 2014). Individual impairment  balance 
stood at AED 4,261 mn as at 30 September 2012.



· Net impairment allowance charge for the first nine months of 2012 was 29%
lower at AED  1,308 mn compared  to the  same period last  year. Charges  for 
impairment allowances on loans and advances, net of recoveries amounted to AED
1,279 mn in 9M'12 compared to AED 1,607 mn in 9M'11.

· Provisions for the funded and unfunded investment portfolios totaled  AED 
7 mn in 9M'12, compared  to AED 241 mn  in 9M'11. 9M'12 impairment  allowance 
charge also included AED 21 mn on property and equipment.









Total assets (30 September 2012)



· Total assetswere AED 182 bn, 1% lower over 31 December 2011.

· Gross customer loans remained flat at AED 130 bn over 31 December 2011.

· 96% of gross loans were within the UAE.

· Investment securities portfolio increased to AED 19 bn from AED 15 bn  as 
at 31  December  2011.  97%  of  the portfolio  was  invested  in  bonds  and 
government securities providing a liquidity pool for the Bank.



Customer deposits* (30 September 2012)



· Total customer  deposits remained  flat at AED  109 bn  over 31  December 
2011.

· Loans  to  deposit ratio*  improved  to 113.57%  from  114.27% as  at  31 
December 2011.

· Advances to  stable resources  ratio was  86% compared  to 92%  as at  31 
December 2011.



* Deposits from customers were reclassified in June'12 to show Euro commercial
paper separately



Capital adequacy and liquidity ratios (30 September 2012)



· The Bank's capital adequacy ratio was 22.53% compared to 22.51% as at  31 
December 2011  and above  the minimum  requirement of  12% determined  by  the 
Central Bank.

· The Bank's  Tier I  ratio stood  at 16.22% compared  to 15.90%  as at  31 
December 2011, above the minimum requirement  of 8% determined by the  Central 
Bank. The increase in  Tier 1 ratio was  mainly driven by increased  retained 
earnings.

· The Bank's liquidity ratio  for the nine month  period of 2012 was  22.3% 
compared to 21.6% over the corresponding period in 2011.









2012 Awards



Human Resources Award in the Banking & Financial Sector at the National Career
Exhibition

"Best Woman Award" in  the Banking & Financial  Sector at the National  Career 
Exhibition

"Most Improved Islamic Bank in the Middle East" by Euromoney

Best SME AccountAwardfor ''BusinessEdge Free  Zone Platinum Account'' for  the 
second year in a row

Best SME Trade FinanceOffering for 'BusinessEdge Trade 360'

"Best Retail Bank in the UAE" for the fifth year in a row by The Asian  Banker 
and "Best Retail Bank in the Gulf Region"

The Freddie Award for 2012 for "Best Loyalty Credit Card" in the Middle  East, 
Asia and Oceania region

"Best Premium Card" at the Middle East Smart Card Awards 2012

The HawkamahBank Corporate Governance Award 2012

The Banker Middle East  Awards for 'Best Bank  in the UAE', 'Best  Transaction 
Bank' and 'Best Corporate Bank'

The Best Domestic  Cash Management  Bank in  the UAE  and in  the Middle  East 
(Third best  in the  UAE and  Middle East)  in the  Euromoney Cash  Management 
Survey 2012

"Elite" quality recognition award  from Deutsche Bank,  J.P. Morgan Chase  and 
Commerzbank for exceptional international payment processing





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associated PDF document.

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                                  Nabil Juma

                         Head of Strategic Relations

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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