Monday, 6 May 2019

#AbuDhabi Commercial Bank 2019 Q1 profit falls 5%, sees cost synergies from three-way merger | ZAWYA MENA Edition

Abu Dhabi Commercial Bank 2019 Q1 profit falls 5%, sees cost synergies from three-way merger | ZAWYA MENA Edition:

Abu Dhabi Commercial Bank , which formalised a merger with two other banks last week, reported a 5 percent fall in first-quarter profit, hurt by lower interest income, missing analysts’ forecasts.

Net interest and Islamic financing income of 1.71 billion UAE dirham ($465.58 million) fell 7 percent from the first quarter of 2018, as the bank said its move to raise long-term funds hit its profitability.

"Bottom line was impacted by higher cost of funds underpinned by a conscious decision to increase long-term time deposits and wholesale funding to meet the evolving regulatory liquidity requirements," said Deepak Khullar, chief financial officer.

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