Abu Dhabi Commercial Bank quarterly net profit up 32%

Abu Dhabi Commercial Bank (ADCB), the third-largest lender in the United Arab Emirates, on Monday reported a 32% increase in first-quarter profit on higher net fees and commission.The lender reported net profit of 1.483bn dirhams ($391.55mn) for the three months to March 31, up from 1.121bn dirhams in the same period last year.Net fees and commission income was up 10% year on year, mainly attributable to a significant increase in trade finance commission as well as higher loan processing and card-related fees, it said.Banks in the United Arab Emirates are making a swift recovery in earnings as the economy rebounds from the worst of the Covid-19 pandemic, with oil prices having surged and the Expo world fair having boosted tourism.“ADCB delivered a solid performance in the first quarter of 2022, reflecting improving economic conditions in the UAE despite ongoing global uncertainty,” the group’s chief executive, Ala’a Eraiqat, was quoted as saying in a company statement.The bank has recovered from its exposure to UAE hospital operator NMC, which ran into financial difficulties and went into administration in 2020.The bank said it received 37.5% of transferable exit instruments in a $2.25bn facility issued by NMC’s operations in the UAE and Oman following the hospital operator’s completion of a debt restructuring process and exit from administration on March 25.The bank said its impairment charges in the first quarter improved significantly to 294mn dirhams, down 58% from last year on higher recoveries and improved economic conditions.