Net profit attributable to equity shareholders was up 18 per cent at Dh2 billion at the close of the first half of 2014, with the earnings per share improving to Dh0.36 for the first half of 2014 versus Dh0.29 for the same period in 2013.
"The strength of our balance sheet and solid capital position is a reflection of our dedication to deliver sustainable value for all our stakeholders. The
The bank's operating income was up 1 per cent to Dh3.77 billion while the operating income for the comparable period last year included Dh103 million one-off gains from retirement of hedges. Thus excluding the non-recurring gain, operating income for the first half of 2014 increased 4 per cent and non-interest income increased 8 per cent to Dh982 million. Net fees and commission income was up 24 per cent at Dh589 million compared to the first half of 2013.
The bank's balance sheet continued to strengthen with the total assets increasing by 8 per cent year to date. As at
Net impairment allowance charges fell to Dh407 million as at
Disciplined cost management reduced interest expense significantly while continued improvements in credit quality and risk profile were seen. Interest expense improved 24 per cent year-on-year to Dh719 million in the first half of 2014 with the cost-to-income ratio weighing in at 31.9 per cent.
"Our focus on disciplined cost management, combined with improved asset quality, has contributed to our success in first half of 2014. CASA [current and savings account] deposits reported a significant increase year to date, accounting for 48 per cent of total customer deposits, compared to 39 per cent at year end," said Ala'a Eraiqat, a member of the board and chief executive officer of ADCB.
ADCB's net loans and advances during the first half of 2014 stood at Dh134 billion, up 2 per cent from the figure registered at the end of last year. On the liability side, customer deposits were up 3 per cent to Dh119 billion in the same period. Continued improvement was seen in CASA deposits, accounting for 48 per cent of total deposits as compared to 39 per cent at the close of the first half of 2013.
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