ADCB 2009Q3 profit AED44m -90%

[sharewadi]

Abu Dhabi Commercial Bank not having a good time of it - profit down 90% to just 44 million dirhams for Q3. At least they didn't lose money. Big whack of provisions booked - AED 810 million. Presumably related to Al Gosaibi?

ADX 27 October 2009 (during trading):

Abu Dhabi Commercial Bank discloses board report and financial statements for the 3rd quarter, 2009

Director's report and financial statements released about 12:30pm I think. There's no notice on the ADX website about ADCB shares being suspended for disclosing results during trading hours though.

Reuters 27 October 2009:

Abu Dhabi Commercial Q3 profit dives on provisions Abu Dhabi - Abu Dhabi Commercail Bank's (ADCB) third-quarter profit plunged to a tenth of the earnings in the corresponding period of 2008 as it booked hefty provisions against bad loans. The lender's net profit for the three months to Sept. 30 amounted to 44 million dirhams ($11.98 million) compared to 447.6 million dirhams in the year-earlier period. It said it booked provisions of 810 million dirhams in the third quarter compared to 312.5 million dirhams a year earlier. Year-to-date provisions stood at 1.7 billion dirhams, it said in a statement on Tuesday.

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[sharewadi]

WAM 27 October 2009:

ADCB announces nine month net profit of Dh 701 million Abu Dhabi - Abu Dhabi Commercial Bank (ADCB) today announced its results for the nine month period ended 30 September 2009 ("YTD'09"), stating that the net profits were Dh701million, a decline of 57% over YTD'08. Net interest income was AED 2,418million, an increase of 35% YTD'08. ADCB said today in its statement that the record pre-provision profit of Dh2, 405million was up 8% over YTD'08. Continuing discipline and focus on costs; cost to income ratio dropped from 43% in Q4'08 to 31% in Q3'09. It added that net impairment allowances were Dh1, 701million, an increase of 179% over YTD'08. The report noted that customer loans aggregated Dh119 billion, up 14% from 30 September 2008, while customer deposits aggregated Dh84billion, up 19% from 30 September 2008. Capital adequacy ratio remains at 19.4% (Basel II). Excluding Dh6.6billion of deposits converted to Tier 2 capital in Q1'09, the confirmatory documentation for the Tier II conversion is still pending. Commenting on the Bank's performance, Eissa Al Suwaidi, Chairman of ADCB said "We have maintained momentum in our top line revenues from core businesses. The Bank remains well capitalised, with a Tier I ratio of 14.3% and a loans to stable resources ratio of 91%. However, the Bank continued to set aside provisions to cover any probable loss in its loan portfolio and some investments which had a negative impact on the Bank's results for Q3." Speaking on the results for the nine month period ending September 30th, 2009, ADCB's CEO, Ala'a Eraiqat, said, "The Bank has delivered strong income growth of 9%. Net interest income showed a very robust increase of 35%. Our pre-provision profits were up 8%. Deposit growth of 19% outpaced loan growth of 14%. These are good headline numbers and we are pleased with the outcome. We continue to invest in our core businesses as well as in people, systems and processes to position ourselves to benefit from an economic upturn. We have maintained a disciplined approach towards costs and our cost to income ratio is stable at 32.6%." He added that the global economic crisis has impacted many businesses in the Middle East, which are experiencing weak demand, unstable cash flows and lower margins. Our non performing loans, at 4.2% of the loan book, were driven primarily by exposures to two troubled business groups in Saudi Arabia. Excluding exposures to these two groups, the Bank's non-performing loans stood at 2.6%. "We have set aside over 70% (Dh1.7 billion) of our pre-provision profits year to date as provisions for loan and investment impairments. We will continue to assess our provisions in the light of developments in non performing loans at each reporting date and will increase provisions, if required." "Our core business is performing well; we are winning mandates in corporate advisory and in investment banking - a relatively new line of business for us. In 2009, we were appointed joint lead managers in bond and sukuk transactions worth over US$ 9 billion including the largest sukuk issuance in the UAE. We are working closely with our clients to strengthen relationships and have a good deal pipeline. Our cards business is one of the fastest growing in the country and we are rapidly gaining market share." He added that in the short term, "we expect the markets to remain challenging but are confident about the long term strength and resilience of the UAE economy and the Bank."

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[GPIC]

Abu Dhabi Commercial Bank share recommended “Buy” by EFG Hermes (EFG Hermes - 28/10/2009) with a fair market value at AED3.85, with a potential upside of 83% from its market price of AED 2.10 at report date, 27 October 2009.

Abu Dhabi Commercial Bank share rated “Market Perform” by Al Mal Capital (Al Mal Capital - 28/10/2009) target price was reported by Al Mal Capital at AED2.20 with a potential upside of 5% from its market price of AED 2.10 at report date, 27 October 2009.

How can they be so far apart...!

I think my 5 year nephew could probably give me a better estimate...!

"Come on guys, can't you at least get your estimates to within +/-5%, and at least give us a chance!"