thejapannews– ABU DHABI, UAE – The Abu Dhabi Commercial Bank ((ADCB) has recorded a net profit of AED 1.007 billion (United Arab Emirates dirhams), or $274 million for the December 31 2020 quarter.
For the full 2020 year the bank profit totalled AED 3.809 billion ($1 billion).
The quarterly result saw a 9.4 percent return on average tangible equity, while for the full year the return was 8.3 percent.
This was driven by improved cost of funds, lower operating expenses and a 16% rise in net fees and commission income, mainly from higher income from loan and card-related fees, the bank said in a statement released on Sunday.
The Bank said it continues to take a prudent approach to provisioning. Net impairment charges were AED 3.993 billion ($40 million) in the full 2020 financial year, significantly higher than in the prior year, to reflect the challenging macro-economic environment and due to provisions taken on NMC Health Group, Finablrand associated companies.
“In testing times, ADCB has drawn on its strengths a robust balance sheet, disciplined governance and a high-performance culture to navigate the complex issues raised by the global pandemic, softening global economic activity and low oil prices,”Khaldoon Al Mubarak, Chairman of the Board of ADCB, said Sunday.
“Our priority through this difficult period has been to extend support to our communities in many forms. In particular, ADCB was the first bank to introduce a wide-reaching relief package for customers, in conjunction with the UAE Central Bank’s TESS programme, which has provided individuals and businesses with a clear route to stability and recovery. Meanwhile, the Bank also completed its fast-tracked integration with Union National Bank and Al Hilal Bank in April 2020, within only 11 months of the legal close of the merger.:
“As a unified, powerful and streamlined banking group, ADCB is now embarking on a five-year strategy centred on accelerated digital transformation, which will elevate customer experience and enhance efficiency further. ”
“An unwavering commitment to best-practice governance has served the Bank well through successive market cycles and remains critical to its fortitude and growth. As the UAE takes prudent measures to establish a solid platform for a broad recovery, ADCB is in a strong position to play a key role in delivering the country’s economic ambitions in the coming years,” the ADCB chairman said.