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ABU DHABI, July 20 (Reuters) - Abu Dhabi Commercial Bank on Thursday reported a 10.4 percent fall in second-quarter profit as a result of higher impairments and lower non-interest income.
The emirate’s second-largest bank by assets made a net profit attributable to shareholders of 1.01 billion dirhams ($275.2 million) in the three months to June 30, compared to 1.13 billion dirhams in the same period a year ago, according to its financial statement.
Three analysts polled by Reuters had on average forecast a net profit for the quarter of 1.11 billion dirhams.
ADCB booked impairments of 427.4 million dirhams in the second quarter, compared to 350.8 million dirhams in the prior-year period. “While the bank’s fundamentals and underlying performance remained healthy, our bottom line was impacted by adverse market conditions, which resulted in higher impairment charges and a lower non-interest income in the second quarter,” Ala’a Eraiqat, chief executive, said in the statement.
Loans and advances stood at 164.3 billion dirhams ending June 30 versus 158.5 billion dirhams ending Dec. 31, 2016, while customer deposits grew to 161.8 billion dirhams versus 155.4 billion dirhams in the same period.
In May, ADCB was looking to issue a senior unsecured, benchmark-sized dollar bond, sources told Reuters.
Reporting By Stanley Carvalho, editing by Tom Arnold and Jane Merriman