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16 July 2006

ADCB realizes record profit of AED 1,198 Million for the first half of 2006

Abu Dhabi, July15, 2006: ADCB announced a record net profit for the first half of 2006 of AED 1,198 million against AED 844 million for the same period last year, an increase of 42 %.

Operating profit for the first half of 2006 has risen to AED 1,771 million, a 57 % increase over 2005. Total assets also increased by 19 % from AED 57.5 billion to AED 64.8 billion during the first half of 2006. Deposits have grown by 11% to AED 37.5 billion from AED 33.9 billion for the same period last year. Loans and advances have also increased by 15 % to AED 48.5 billion from AED 42.2 billion at the end of 2005.

Saeed Al Hajeri, Chairman of ADCB, attributed the strong results to growth in core businesses which was complemented by the bank's participation as a receiving bank in the first quarter IPO issues. Eirvin Knox, Chief Executive Officer of ADCB added that, Net interest income increased by 59% to AED 854 million, while net fees and commissions also increased by 65 % over the prior year to AED 827 million. The bank maintained its low cost base with a cost to income ratio below 20 %. In addition, the first six months of 2006 Al Dhabi brokerage saw its volumes increasing with corresponding revenues rising month on month.

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.

ADCB's re-branding efforts have been ongoing with a total of 15 flagship branches completely renovated with our new branch design. The largest of our branches, located at our new Head Office building in Abu Dhabi, was opened June 1st, 2006, providing a show case for the new customer service focused design.

"We continue to introduce innovative products and services to our valued customers. In the second 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 debut Islamic Banking product, Methaq Mudarabah Investment Programme, to serve our existing and new customers. We also introduced the Multiplier Deposit in both UAE Dirhams and US dollars for resident and non-resident individuals,' stated Knox.

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 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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