Abu Dhabi Commercial Bank on Wednesday posted a 18.2 per cent fall in first-quarter net profit, as income from its core business dipped and provisions increased.

The third largest bank by assets in the United Arab Emirates made a net profit attributable to shareholders of Dh1.02 billion ($277.7 million) in the three months to March 31, compared to Dh1.25 billion  in the same period a year ago, it said in a bourse statement.

Two analysts polled by Reuters had forecast a net profit for the quarter of Dh1.13 billion and Dh1.28 billion respectively.

The amount of cash ADCB set aside for bad loans rose to Dh352.2 million in the first quarter, compared with Dh241.3 million  last year.

Much of this was the bank bolstering its general provisions to account for an increase in the size of the loan book, in light of current market conditions, it said.

Loans and advances rose 11 per cent to stand at Dh156.7 billion as of March 31, ADCB said.

A 4 per cent decline in income from its core business, known as net interest and Islamic financing income, to Dh1.57 billion also contributed to the profit drop.

Deposits rose 15 per cent to Dh147.3 billion at March 31, ADCB said, compared with Dh128.5 billion at the same point last year. – Reuters