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Abu Dhabi lender ADCB buys back shares worth $103m

Published: Updated:

Abu Dhabi Commercial Bank, the United Arab Emirates’ third-largest lender by market value, bought back shares worth 377.2 million dirhams ($102.7m) on Wednesday, the latest stock buyback by the state-owned lender.

In total, 77.6m shares, representing 1.387 percent of its total stock, were repurchased by the lender at a price of 4.86 dirhams each, ADCB said in a bourse filing on Thursday.

The purchase price was equivalent to a 5.6 percent discount to Tuesday’s closing share price of 5.15 dirhams. The stock is trading just off the 59-month high achieved on June 20.

It is the second large buy back transaction which ADCB has completed since the regulator gave it permission in January to purchase up to 10 percent of its share capital: on May 2, the bank bought back stock worth 4.68 percent of share capital for 1.15bn dirhams.

ADCB is due to report second-quarter earnings on July 22. In a Reuter’s poll, the average forecast of six analysts was for ADCB to post a 6.87 percent rise in net profit for the period.