Abu Dhabi Commercial Bank (ADCB) has announced a 90 per cent fall in third-quarter profits because of large provisions it has taken against bad loans.

According to the bank, third-quarter profits dropped to AED44m ($11.98m) in the three months to the end of September, from AED447.6m in the same period in 2008. Provisions in the third quarter were AED810m, bringing the total provisions in 2009 to AED1.7bn.

Net interest income rose 35 per cent in the first nine months of 2009 to AED2.4bn, and total revenue increased to AED3.65bn. The bank also reported a loan:deposit ratio of 140 per cent, well above the Central Bank of the UAE’s new guidelines that loans not exceed deposits.

In contrast to ADCB’s poor performance, the National Bank of Abu Dhabi reported a 41 per cent increase in third-quarter profits. The bank said profits rose to AED914m, from AED651m in the third quarter of 2008.

The bank made provisions of AED284m in the third quarter. Total assets reached AED186bn, up from AED165bn at the end of 2008. The bank said loans and advances grew to AED128.2bn, and deposits rose to AED110.5bn.