ADCB, 58-percent owned by the government of Abu Dhabi, posted a net profit of AED607.6 million ($165.5 million) in the third quarter, compared with AED317.7 million in the year earlier period, the bank said in a statement.
Analysts polled by Reuters earlier this month forecast an average third-quarter net profit of AED461.17 million.
“Our disciplined approach to balance sheet and capital management resulted in significant improvement in our liquidity levels and strengthened funding profile. For the quarter, funding costs were at their lowest level,” Deepak Khullar, chief financial officer said in the statement.
Net impairments allowances booked in third quarter was AED514 million, down 22 percent over the same period last year. Year to date net impairments stood at AED1.84 billion, 30 percent lower over last year, the bank said.
Net interest and Islamic finance income grew to AED1.33 billion in third quarter compared with AED877 million in the same period last year.
ADCB gave out a $1.9 billion loan to sovereign fund Aabar’s parent International Petroleum Investment Co. (IPIC) to finance Aabar’s purchase of ADCB’s 25-percent stake in RHB Capital, sources said earlier this month.
ADCB shares were halted for trading on the Abu Dhabi bourse Tuesday pending announcement of results. They have risen 32 percent year-to-date.
