Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) on Thursday said its profits declined by 10.4% year-on-year in the second quarter of 2017 on the back of higher impairment charges.
The bank posted AED 1 billion ($272.2 million) in net profit in the period between April and June 2017, down from AED 1.12 billion ($304.85 million) in the same period of 2016, according to a bourse filing.
Impairment charges increased 22% to AED 427.42 million in Q2-17, compared to AED 350.84 million in the corresponding period of 2016, ADCB said.
Meanwhile, at the level of the first six months of 2017, ADCB logged AED 2.11 billion in profits, down 1.5% from AED 2.14 billion in H1-16.
ADCB had previously reported an 8.3% rise in profits to AED 1.10 billion in Q1-17, up from AED 1.02 billion in the year-ago period.
“While the bank’s underlying performance and volumes remained healthy, our bottom line was impacted by adverse market conditions, which resulted in higher impairment charges and a lower non-interest income in [Q2-17], ADCB said.
The Abu Dhabi-listed bank further noted that its first half results had benefited from “significant impairment allowance releases on loans which were not repeated in the first half of 2017.”
