10 October 2006
ADCB realizes record profit of AED 1,616 Million for the nine months ended September 2006
Abu Dhabi, October 10, 2006: ADCB announced a record net profit for the 9 months period of 2006 of AED 1,616 million against AED 1,425 million for the same period last year, an increase of 13 per cent.
Eirvin Knox, CEO of ADCB, attributed the strong results to growth in our core businesses which was complemented by the bank’s participation as a receiving bank in the first quarter capital markets’ IPO issues. ”If you eliminate the impact of profits from IPO activity from the year on year results, the Bank has achieved an increase in core profits of 33% over 2005, due to the strong growth in our core businesses”.
Operating profit for the 9 months period of 2006 has risen to AED 2,396 million, a 27 per cent increase over 2005. Total assets also increased by 25 per cent from AED 57.5 billion to AED 72 billion during the nine month period. Deposits have grown by 20% to AED 40.9 billion from AED 33.9 billion for the same period last year. Loans and advances have also increased by 28 per cent to AED 54 billion from AED 42.2 billion at the end of 2005.
“We continue to introduce innovative products and services to our valued customers. In the third quarter we initiated The Smart Loan Scheme providing individuals with immediate finance that meets their urgent needs with easy repayment arrangements with a low interest rate which has been extremely popular in the market. We also re-launched our Million Dollar Dream Deposit, Mortgage Services, All in One Account and many other innovative products and services are on queue awaiting final touches and approvals, to better serve our existing and new customers.,’ stated Knox.
Recently, the bank issued USD $400 million of subordinated debt along with the launch of a USD $ 2 billion euro commercial paper programme. Both of these issues have positioned the bank to sustain a high rate of growth while at the same time ensure funding is available at the lowest cost. The debut issue of the euro commercial paper programme is a first in the UAE. The bank is currently arranging a note issuance denominated in Sterling Pounds as well as an Australian dollars bond issue.
New business initiatives that were started in late 2005 such as Abu Dhabi Brokerage, ADCB Macquarie infrastructure and derivatives businesses have all made major contributions to the revenue in 2006, as well.
We launched ADCB Macquarie Real Estate Capital PJSC a joint venture which will expand on the existing relationships between the two Banks to take advantage of the growth in the regional real estate sector and provide a full range of broad-based real estate investment banking services to clients in the UAE, Knox explained.
ADCB’s re-branding efforts have been ongoing with a total of 17 of our flag ship branches completely renovated with our new banking service design. In addition, the bank has opened a wealth management center and its full service brokerage in our new head office building in Abu Dhabi.
ADCB has been recognized by Euromoney as the “Best Middle Eastern Borrower” in recognition of its EMTN programme, syndicated loan and subordinated debt issues. ADCB was also voted ’Best Local Currency FX Trading Bank in UAE’ in a recent survey conducted by Euromoney’. In addition Global Finance Magazine awarded ADCB the Best Investment Bank 2006 in the UAE. These awards validate our efforts towards creating best practice standards, strengthening stakeholders’ confidence and maintaining high performance levels. We are committed to sustain the growth, profitability and customer expectations, and maintain our hall mark in terms of performance, innovation, security and quality,” Saeed Al Hajeri concluded.
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