A nine-month net profit from January-September 2020 of Dhs2.802bn, down 33 per cent compared to Dhs4.196bn in the corresponding period last year. Operating income increased 2 per cent sequentially to Dhs2.991bn in the third quarter this year, while its operating expenses were 14 per cent lower year-on-year at Dhs1.102 billion. Net impairment charges were recorded at Dhs504m, 25 per cent lower quarter-on-quarter on account of higher recoveries and releases. The bank said that its net loans meanwhile increased 2 per cent quarter-on-quarter to Dhs243bn as of September 30, 2020, and were 2 per cent lower year to date “on account of large corporate repayments in June and de-risking of its retail portfolio.
Cost to income ratio, excluding one-off integration costs, stood at 34.3 per cent for the January-September 2020 period, an improvement of 335 basis points year on year, while operating expenses (excluding integration costs) were down 14 percent year on year. The average loan balance was Dhs245bn during the first nine months of 2020. It participated in the UAE government’s Targeted Economic Support Scheme (TESS) which aimed to help businesses in the country counter the financial impact of the Covid-19 pandemic. ADCB thereby offered measures including deferment of loan installments, reduced fees and charges, interest rate reductions and waivers, and rescheduling of working capital facilities for SMEs and corporates. A marked development in recent months has been the popularity of our digital platforms, with the rate of adoption by our customers increasing substantially, even as lockdown measures in the UAE were eased. Registered users on the bank’s mobile and internet banking increased by 18 per cent over last year to approximately 800,000 customers. ADCB is investing significantly to ensure that we remain at the forefront of financial technology, with 60 successful digital launches including new products, services and enhanced app features in the first nine months of this year, double the rate of last year.