ADCB among banks to post increased profits
UAE banks have had a positive first half, with almost all banks posting strong growth in profits.
Abu Dhabi Commercial Bank (ADCB), which announced its H1 results on 21 July, saw a 17 per cent rise in net profits to AED2.5bn ($689m), compared to AED2.2bn in H1 2014.
Its loan portfolio grew just 3.7 per cent over the first six months of 2015 to AED145.8bn, with the non-performing loan ratio steady at 3 per cent.
Abu Dhabis Union National Bank reported a similar performance to the same period the previous year, increasing its half-year net profits 14.9 per cent to AED1.2bn.
Its loanbook grew 5.5 per cent to AED67.6bn over the six month period, while the ratio of non-performing loans declined slightly to 3.4 per cent.
In Dubai, Mashreq increased its H1 net profits to AED1.3 billion, 11.6 per cent up on the same period in 2014. It increased its loan portfolio to AED58.5bn over the six months, growth of 4.5 per cent, with its non-performing loan ratio steady at 3.7 per cent.
Smaller UAE banks have so far posted steady increases in net profits, with Ajman Bank and Emirates Islamic Bank performing exceptionally well.
Only Abu Dhabi-based Islamic Al-Hilal Bank is giving cause for concern. It confirmed the resignation of CEO Mohamed Jamil Berro earlier in July, following a 79.6 per cent fall in net profits in 2014 to AED90m. Reuters is reporting that the banks chairman Ahmed Ateeq al-Mazrouei has also resigned.
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