Abu Dhabi Commercial Bank Q2 net profit down 15 pct as impairments rise

The logo of Abu Dhabi Commercial Bank (ADCB). (Supplied)

Abu Dhabi Commercial Bank posted a 15 percent drop in second-quarter net profits after higher impairment costs, including to cover its exposure to troubled hospital operator NMC Health, the United Arab Emirates’ third-largest bank said on Wednesday.

Its net profit fell to 1.23 billion dirhams ($334.89 million) from 1.45 billion a year earlier.

Impairment charges in the first half of the year rose to 2.55 billion dirhams from 1.17 billion a year earlier.

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ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.

“Total impairment allowances related to NMC Health Group, Finablr and associated companies stood at AED 1.231 billion at the end of H1, which includes AED 159 million recorded in Q2,” ADCB said.

Read more: Abu Dhabi’s ADCB hires Lazard to advise on NMC Health, Finablr exposure: Sources

It said it continues to work with NMC’s administrators to ensure repayment of NMC’s debt.

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Last Update: Wednesday, 29 July 2020 KSA 19:38 - GMT 16:38
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