UAE News: Abu Dhabi Bank Exposure to NMC Health is $981 Million - Bloomberg:
Abu Dhabi Commercial Bank PJSC’s $981 million of exposure to troubled hospital operator NMC Health Plc risks wiping out more than 80% of the lender’s estimated profit for this year.
The liabilities as of the end of March represented less than 1% of the bank’s total assets, according to a statement. With an estimated profit of 4.35 billion dirhams ($1.18 billion) this year, according to four analyst forecasts, the exposure represents about 82% of projected profit, according to Bloomberg calculations. It also represents about 1.44% of 250 billion dirhams of net loans.
Abu Dhabi Commercial Bank is seen as one of the biggest creditors to NMC, people with knowledge of the matter said on Tuesday. It’s also a lender to payments firm Finablr Plc, which is linked to NMC through its founder and cross-ownership, the people said. The bank is said to be working with Lazard Ltd. to try to recover some of the funds from the struggling companies.
The credit was provided to London-listed NMC through a combination of facilities by ADCB, as well as by Union National Bank and Al Hilal Bank prior to the merger of the three banks last year, it said.
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