ADCB POSTS FIRST QUARTER 2013 NET PROFIT AED 903 MN

Abu Dhabi-April-25(BNA)Abu Dhabi Commercial Bank PJSC (“ADCB” or the “Bank”) today reported its financial results for the first quarter of 2013 (“Q1’13”).
Results highlights*

– Net profit of AED 903 mn compared with AED 861 mn in Q1’12 and AED 628 mn in Q4’12
– Record quarterly operating income at AED 1,744 mn, an increase of 5% over Q1’12 and 13% over Q4’12
– Record quarterly operating profit before impairment allowances at AED 1,227 mn, up 7% over Q1’12 and 19% over Q4’12
– Non-interest income of AED 485 mn, an increase of 14% over Q1’12 and 73% over Q4’12, primarily due to retirement of financial liabilities and associated hedges
– Cost to income ratio significantly improved to 29.7% compared to 30.6% in Q1’12 and 33.1% in Q4’12
– NPLs remain unchanged at 5.4% and provision coverage improved to 84.5% from 82.2% at the end of 2012
– Customer deposits¹ up 2% at AED 111 bn compared to 31 December 2012, with significant improvement in customer deposit constitution, CASA customer deposits accounted for 32% of total customer deposits compared to 30% as at 31 December 2012 and 25% as at 31 March 2012
– Loan to deposit ratio improved to 112.0% from 112.8% as at 31 December 2012
– Strong capitalisation and liquidity levels, CAR at 22.29% and Tier I ratio at 17.55% as at 31 March 2013
*The Bank early adopted IFRS 10 with a date of initial application of January 1, 2012. Accordingly, the comparative information of all the quarters for the year 2012 has been restated. Overall annual income statement for 2012 remains unchanged. For further details please refer to Note 2.1 of the Financial Statements for the period ended 31 March 2013.
¹ Deposits from customers were reclassified in 2012 to show Euro Commercial Paper separately
Ala’a Eraiqat, member of the Board and Chief Executive Officer, commented on the results:
“We are pleased to announce that the Bank registered a net profit of AED 903 mn for the first quarter of 2013, an increase of 5% year on year and 44% quarter on quarter. This success can be attributed to the effective management of our balance sheet; maintaining a disciplined loan growth strategy, increasing CASA customer deposits and relying on diversified sources of funding, whilst continuing to focus on improving operating efficiency and effectively managing capital.
While the global economic uncertainties and challenges persist, February 2013 marked the issuance of ADCB’s first concurrently issued dual senior and subordinated debt offering of a total of USD 1.5 bn and the largest subordinated debt transaction by a Middle Eastern Bank. The strong appetite for ADCB debt offerings confirms the trust that global investors have in ADCB.
We continue to move forward in 2013 by continuing to focus on our strategic objectives and building a stronger, more resilient bank for the future. Our results confirm our ability to execute and deliver long-term sustainable value for our customers and shareholders”.
Deepak Khullar, Group Chief Financial Officer, commented on the results:
“ADCB had a good start to the year, delivering strong top and bottom line numbers which reflect and demonstrate the strength of our franchise. Net interest income was up 2% year on year, primarily driven by a 23% reduction in cost of funds. Operating expenses increased by 2% year on year, as we continue to invest in our business and overall cost to income ratio for the quarter declined to 29.7%. The bank has a robust liquidity management framework and our liquidity ratio improved further to 24.4% as at 31 March 2013. We remain strongly capitalized with a total CAR of 22.29% and Tier I ratio of 17.55%”.
Awards 2013
January
Group Business Services Division achieved ISO 9001:2008 certification as recognition of the quality management system standard of the bank.
February
ADCB won two awards by Global Finance Magazine, ‘Best Bank in Payments and Collections’ in the Middle East region and the ‘Best Bank in Trade Finance’ in the UAE.
ADCB won the Human Resources Development Award in Emiratization in the banking industry by The Emirates Institute for Banking & Financial Studies (EIBFS), including the “The Best Emiratization CEO Award”, “Honoring UAE Nationals in Higher Management positions in the Banking Sector Award” and “Distinguished Woman in the Banking & Finance sectors Award”.
March
ADCB won three awards at the Banker Middle East Product Awards 2013; “Best New SME Product”, “Best Trade Finance Offering” and “Best Cash Management”.

A H N

Kingdom of Bahrain stresses its Solid Stance for the Palestinian Issue

New York, April 25th (BNA) – Bahrain Permanent Representative to United Nations, Ambassador Jamal Fares Al-Ruwaiee delivered a speech in front of UN Security Council, in the open discussion concerning the Middle East, which was held yesterday at the United Nations Headquarters in New York.

Al-Ruwaiee stressed Bahrain’s solid stance for the Palestinian issue, which is based on the implementation of the Security Council’s and the General Assembly’s resolutions. He also asserted that the hard work to find a just, a lasting and a comprehensive solution for the Palestinian cause will not be feasible until the establishment of the independent Palestinian state with East Jerusalem as its capital.

Al-Ruwaiee called on the international community to assume its responsibilities and take immediate action to lift the siege on the Gaza Strip and alleviate the suffering of the Palestinian people.

Al-Ruwaiee said that His Majesty King Hamad Bin Isa Al Khalifa has made it clear at the Arab summit held recently in the State of Qatar, that the last period has seen many developments and changes that provide new conditions and clear and consistent foundations for peace in the Middle East, based on the two-states solution.

Al-Ruwaiee highlighted that HM the King pointed out the need to adopt a new approach for the just and comprehensive peace process in the region, through agreement and coordination with friends in the international community to act on the basis of the implementation of the terms of reference of international legitimacy and the Arab peace initiative adopted at Beirut summit in 2002.

Al-Ruwaiee also said that HM the King pointed out the principle of land for peace and to end the Israeli occupation that began in 1967, and also to stop settlement activity in the occupied Palestinian territories, particularly in Jerusalem.

Al-Ruwaiee concluded his speech pointing out that peace in the Middle East is the only choice, adding that Israel should stop its policy of occupying the Palestinian territories.

MR