12 April 2006
Abu Dhabi Commercial Bank Announces record profit in 2006, First Quarter Results
Abu Dhabi, April 11, 2006: Abu Dhabi Commercial Bank (ADCB), one of the UAE's leading financial institutions, today announced a net profit for the first quarter 2006 of AED623 million against AED221 Million for the same period last year, an increase of 182 per cent. During the three month period total assets rose by AED 10.2 billion to AED 67.7 billion, while loans and advances grew by AED 5.1 billion to AED 47.2 billion. Funding the increases were customer deposits growth which increased AED 9.8 billion to reach AED 43.7 billion at the end of March.
The strong results can be attributed to ADCB's ability to execute on a series of strategic business initiatives, while taking opportunities to support the recent IPO issues. There have also been a number of new products launched, such as internet banking for retail customers, and the Al Mada'en real estate fund among others. There is a strong deal pipeline ADCB will participate in going forward.
ADCB's re-branding efforts have been ongoing with a total of 13 of our flag ship branches completely renovated with our new banking service design. This transformation was extended to include our head office building and the quarter ended with staff moving to the new "state of the art" facility in March.
Eirvin Knox, Chief Executive Officer, remarked that "ADCB's has had substantial growth from all business lines in the first quarter of 2006 and demand is expected to increase going forward particularly in the areas that we have targeted. The focus on infrastructure financing complemented by sophisticated treasury products to manage the risks has positioned ADCB well going forward. The launch of retail internet banking this quarter and broadening our brokerage services continues to add to our core customer base. "
ADCB's strategy and achievements were recognized recently by an upgrade to its credit rating by Standard & Poor's. With the upgrade to 'A/A-1' from 'A-/A-2' with a stable outlook puts ADCB among the highest rated banks in the region. A strong credit rating affords ADCB the flexibility to fund its rapid asset growth from a variety of sources at affordable rates.
"We are confident that the results of the first quarter are a sound basis for improving performance for the remainder of the year," confirmed Eirvin Knox, CEO of ADCB.
"Tremendous effort has been laid down to support our success for the remainder of 2006," continued Mr. Knox. "This included continued good progress with monitoring our risk plans, provide financial packages to clients at all levels, in addition to taking major role in advising the government on major projects planned in UAE. Concluded, Eirvin Knox.