Sunday 25 April 2021

#UAE bank ADCB reports soaring profit as it recovers from NMC impairments | Reuters

UAE bank ADCB reports soaring profit as it recovers from NMC impairments | Reuters

Abu Dhabi Commercial Bank (ADCB) (ADCB.AD), UAE's third-biggest lender, reported a more than 400% surge in first-quarter profit on Sunday, after it took big impairments a year earlier due to its large exposure to troubled hospital operator NMC Health.

Net profit in January-March this year totalled 1.1 billion dirhams ($299.50 million), a 436% increase year on year and an 11% increase quarter on quarter, ADCB said.

The growth was "largely due to improved cost of risk compared to Q1 '20," Chief Executive Ala'a Eraiqat said in the earnings statement.

In the first three months of 2020 ADCB reported an 84% fall in net profit as it took $292 million in impairments on debt exposure to NMC Health and payments group Finablr, which ran into financial difficulties last year.

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