Abu Dhabi Islamic Bank net profit up 2.3%
02 Aug 2012 04:26 GMT
 

Wednesday, Aug 01, 2012

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) said on Wednesday its net profit for the fiscal second quarter ros (more)

Wednesday, Aug 01, 2012

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) said on Wednesday its net profit for the fiscal second quarter rose 2.3 per cent on year to Dh322.6 million even as net revenue for the period declined 2.4 per cent from the corresponding quarter a year earlier to Dh888.6 million.

In a statement, ADIB said total credit provisions and impairments for the second quarter of 2012 were Dh186.6 million compared with Dh235.8 million in the same period a year earlier, a decrease of 20.9 per cent.

“Total credit provisions now amount to 6.1 per cent of gross customer financing assets and represent a pre-collateral non-performing coverage ratio of 74.3 per cent,” said ADIB.

The bank’s stock on the Abu Dhabi Securities Exchange fell 0.96 per cent yesterday to Dh3.10.

Commenting on the bank’s second quarter financial performance, ADIB’s Chief Executive Officer Tirad Mahmoud said: “The first half of 2012 has witnessed a welcome, and unprecedented, focus by the Central Bank of the UAE on enhancing the regulatory environment. Our outlook (for 2012) has not changed and we remain concerned about global and regional growth rates and the impact on our markets. While the introductions of new regulations will prove to be challenging, we are confident that ADIB is well positioned and in this regard, will continue its practice of being an early adopter of the changes.”

Mahmoud added: “We continue to expect a subdued year for the banking sector as a whole and low single digit growth in ADIB’s financing assets in 2012 as we continue towards our goal of building our Tier 1 capital ratio to over 15 per cent.”

By Himendra Mohan Kumar Staff Reporter

Gulf News 2012. All rights reserved.

 



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