Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) has achieved a net profit of AED 1.15 billion in the first quarter of 2019, according to a statement to the Abu Dhabi Securities Exchange (ADX).

This reflects the robust financial performance of ADCB in Q1-19 before the merger with Union National Bank (UNB) and the acquisition of Al Hilal Bank.

The bank’s total assets increased by 4% year-on-year in Q1-19 to AED 292 billion, while total loans and advances to customers grew by 2% to AED 169 billion as compared to the year-ago period.

Additionally, total deposits from customers stood at AED 184.407 billion in the three-month period ended March, up 4% from AED 176.653 billion in Q1-18, ADCB said.              

Current account deposits at the bank reached AED 64.64 billion at the end of March, versus AED 54.855 billion in the same quarter of 2018, the bank indicated.              

Meanwhile, the percentage of loans-to-deposits has improved to 91.7%, compared to 94.2% in Q1-18, the bank added.

Deposits and balances due from banks, excluding loans and advances to banks reached AED 16.812 billion in Q1-19, compared to AED 12.638 billion in the prior-year period.

Total certificate of deposits issued in the US dollar amounted to AED 3.117 billion in the first three months of the year, while total net interest and Islamic financing income reached AED 1.707 billion, versus AED 1.828 billion in Q1-18.

Moreover, net interest income totaled AED 1.453 billion in Q1-19, the bank highlighted.

Ala’a Eraiqat, CEO of ADCB, commented: "We [ADCB] have made good progress in a number of key areas in the first quarter of 2019. In particular, we have delivered a strong and sustainable return on equity, increased fee income and continued to grow our market share in deposits.”

“In a rising interest rate environment, our low-cost CASA deposits grew by AED 10 billion to AED80 billion, reporting an increase of 15% over the year end," Eraiqat noted.

"Fast-paced changes in technology continue to impact customers’ expectations and behaviour, and the Bank’s strategy is evolving in parallel to maintain our position as a progressive player. We have sustained our investment in digital transformation, with key initiatives such as the recent launch of the "Hayyak" onboarding app for new customers, which offers instant account opening," he added.

As for the new merger, he commented: "I am also pleased to announce that the combination of ADCB with UNB and Al Hilal Bank has taken effect, and we are already making rapid progress in integrating the three organisations.

Looking ahead to the future of the Bank, our priorities are to maintain the highest standards of customer service throughout the integration, while delivering cost synergies and sustainable long-term growth."

It is worth noting that net profits of Abu Dhabi’s second-largest lender totalled AED 1.36 billion in Q4-18, compared to AED 1.07 billion in Q4-17.

In 2018, ADCB had reported a 13% year-on-year growth assets, reaching AED 4.84 billion, versus AED 4.28 billion.