To follow the market trend you require the latest market information. Our market news provides you with up to date information as to what obtains in every market.
[2008-07-18] Abu Dhabi Commercial posts profit of $179m Abu Dhabi Commercial Bank (ADCB) posted its second-biggest quarterly profit ever in the second quarter as it boosted lending during an economic boom and more than tripled its income from currency trading.
Abu Dhabi's third-biggest bank by market value said second-quarter profit jumped 34 per cent to 655.4 million UAE dirhams ($178.5m), topping the 574.9m dirhams average forecast in a Reuters survey last month.
The bank, which did not immediately release quarterly net interest income, said total loans and advances jumped 34pc in the first half to 91 billion dirhams.
Gulf banks have grown rapidly as economies in the world's biggest oil-exporting region surge on a near seven-fold increase in oil prices since 2002, giving banks massive financing opportunities in corporate and retail banking.
ADCB's quarter profit was also boosted by a 227pc jump in income from trading in foreign exchange and derivatives, the lender said.
Fee income advanced 45pc while total operating income grew 45pc.
Global investors have piled into dollar-pegged Gulf currencies this year, including the UAE dirham, on bets the oil producers may sever their links to the ailing dollar.
The regional economic boom has also driven liquidity on Gulf stock markets, giving banks more access to brokerage and investment banking income.
Total assets for the first six months of the year rose 33.5pc to 128bn dirhams compared with the same period last year.
The bank's shares rose 1.2pc yesterday to 5.02 dirhams - nearly 15pc below NBK Capital's 5.9-dirham price target and more than 44pc below Citigroup's nine-dirham target. The earnings were released after trading hours.
