DUBAI: Abu Dhabi Commercial Bank, UAE's third-biggest lender, beat expectations with a 44% rise in fourth-quarter net profit, boosted by higher net fee and commission income on cards and loans.
Banks in the United Arab Emirates are seeing a swift recovery in earnings as the economy recovers from the worst of the pandemic, oil prices have surged and the world fair Expo has boosted tourism.
ADCB's recorded a net profit of 1.448 billion dirhams ($394 million) in the October-December quarter, up from 1.007 billion dirhams in the same period in 2020.
The net profit beat analysts expectations as EFG Hermes had predicted 1.33 billion dirhams and Arqaam Capital had 1.16 billion dirhams.
Full-year net profit also rose 38% to 5.247 billion dirhams.
ADCB recorded a gain of 166 million dirhams last year on the acquisition of the mortgage portfolio from Abu Dhabi Finance.
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Net fees and commission income rose 22% fuelled by a 50% increase in card related fees and a 27% rise in loan processing fees. Its net loans rose 2.2% from December 2020.
"We capitalised on an active lending pipeline to extend 40 billion dirhams in new credit to targeted economic sectors, including government-related entities, in line with our five-year strategy," Chief Executive Alaa Eraiqat said.
ADCB has recovered from its exposure to UAE hospital operator NMC, which ran into financial difficulties and went into administration in 2020.
NMC Group creditors have voted overwhelmingly in favour of a debt restructuring plan and the exit of the group from administration is expected in the first quarter.
As a major lender, ADCB, will receive "exit instruments" in a $2.25 billion debt claim equivalent to the expected future value of NMC Group.
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