ABU DHABI: Abu Dhabi Commercial Bank (ADCB) posted a 40 percent rise in fourth-quarter net profit as impairment allowances more than halved.

ADCB reported a net profit of AED879 million for the three months to Dec. 31, it said in a statement. That compares with a profit of AED628 million in the prior-year period.

Profit for full year 2013 was AED3.37 billion compared with AED2.74 billion in 2012.

Loan impairment allowances -- the amount of money set aside to meet loan losses — dropped sharply to AED198 million in the fourth-quarter compared to AED402 million in the year ago period, ADCB said.

The bank proposed a dividend of 30 fils per share.

a 50 percent increase to what it paid last year, if the 5 fils per share special dividend paid in 2012 was excluded, the statement said.

Loans and advances grew to 131.64 billion dirhams in 2013, up 7 percent over the previous year, while customer deposits advanced 6 percent to 115.42 billion dirhams last year.

The lender sold a $500 million three-year floating rate bond in the fourth-quarter last year.

ADCB shares did not trade on the Abu Dhabi bourse Sunday. The stock is up 100 percent in the last one year, according to Thomson Reuters data.