Abu Dhabi Commercial Bank (ADCB) has reported a total income of AED4.42 billion for 2008, an increase of 16% over 2007. The bank has appointed Ala’a Eraiqat as its new CEO, replacing Eirvin Knox, who has resigned from the company.
For the year ended December 31, 2008, net profit was AED1.36 billion. Operating profit before provisions grew 3.6%, and core profits, excluding extraordinary items and before provisions, increased 7% over 2007. Total assets grew by 39% with net loans and advances and customer deposits growing by 44% and 48%, respectively.
In response to the government’s initiative to inject additional capital into certain financial institutions in the country, Abu Dhabi Commercial Bank has announced that it will issue tier one capital notes to the government of Abu Dhabi, with a principal amount of AED4 billion. The issuance of the notes has been approved by ADCB’s board of directors.
The notes will bear interest at a rate of 6% per annum payable semi-annually in arrear from (and including) the issue date for a period of five years, and thereafter at a floating rate, reset and payable semi-annually in arrear, reflecting the initial margin. The notes are non-voting, non-cumulative perpetual securities, and are callable subject to certain conditions.
