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08 May 2019, Gergana Bencheva, EMIS Editor

Abu Dhabi Commercial Bank’s net profit drops 5% y/y in Q1 2019

Abu Dhabi Commercial Bank (ADCB) saw its net profit drop by 5% on the year to AED 1.15 billion for the first quarter of 2019, Gulf News noted. The disappointing result, which was below market expectations, was explained with higher cost of funds and higher operating costs.

In detail, between January and March, operating expenses for the bank rose by 3% on an annual basis to AED 793 million. Yet, other costs, such as impairment allowances, fell by 13% year-on-year.

The first quarter financial results were ADCB’s last operations as a standalone bank before merging with Union National Bank (UNB) and then acquiring Al Hilal Bank on May 1. The integration with the two groups is expected to result in cost synergies of around AED 615 million per year, Gulf News underlined.

Sign in and read the full article in emis.com, and find out more about EMIS. Original source: Gulf News