ADCB reveals Dh892m in bad loans

Abu Dhabi Commercial Bank (ADCB) saw first-half profits fall 44 per cent as it set aside Dh892 million (US$242.8m) in provisions against losses on bad loans.

ADCB is estimated to be owed about $500m by the Saad Group and Ahmad Hamad Al Gosaibi and Brothers, whose billions of dollars in debt to regional banks have become a major factor in second-quarter bank earnings.

Other banks in the UAE, including First Gulf Bank and Union National Bank, have set aside cash that would otherwise have been booked as profits to account for exposures to the firms.