ID :
29622
Tue, 11/11/2008 - 17:16
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Shortlink :
http://m.oananews.org//node/29622
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ADCB not affected by global financial crisis: Al Suwaidi
Abu Dhabi, Nov 11, 2008 (WAM) - Board Chairman of Abu Dhabi Commercial Bank (ADCB) Eisa Mohammed Al Suwaidi, said that the bank was in strong position and not affected by the current global financial downturn.
He told Emirates News Agency (WAM) in an interview that ADCB "registers profits in all its operations in the UAE in general and Abu Dhabi emirate in particular".
Al Suwaidi noted that the bank benefited from the amounts of money infused by the Ministry of Finance and the Central Bank into the banking sector to provide liquidity though.
"The UAE economy is prosperous and huge projects in the emirate of Abu Dhabi will boost operations of the ADCB in the next period. The Abu Dhabi economy is exceedingly growing and expanding. This will directly help the ADCB to score more profits", he said.
Al Suwaidi noted that the current global financial crisis led to vanishing of a number of banks, financial firms and companies. Although it was exceptional circumstances, he said "this revives the issue of building confidence among the banks in better manner as projected by Libor Indicator".
He added that the global financial crisis caused some financial constraint to some local banks, indicating that the central bank and the Ministry of Finance took positive action upon the instructions from Vice President and Prime Minister of UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, to provide required liquidity to the banking sector in the UAE.
Al Suwaidi attributed surge in profits to the move of some foreign banks to withdraw their deposits on maturity, a move than raised the demand for local liquidity, adding that the timely intervention of the central bank pacified the matter.
He noted that total of ADCB investments stood at Dh1.7 billion this year and the last quarter of last year, adding that the ADCB was not directly affected by Lehman Brothers crisis. Only Dh20 million investments were affected, but covered.
Al Suwaidi denied that ADCB suffered huge losses in Cheni Fund/American, reiterating that ADCB only lost US$10 million.
He added that the fourth quarter profits will be encouraging, as the bank did not suffer losses at the local and world markets, indicating the size of deposits in the last nine months ended September 30th stood at Dh13 billion. Net profits touched Dh1.78 billion at growth rate of six per cent last year, while the income without profits touched Dh1.49 billion up by 88 per cent compared to previous year.
On merging among the national banks in Abu Dhabi, Al Suwaidi welcomed whatever will strengthen the banking sector in the UAE, indicating that "merging is healthy phenomenon".
Government of Abu Dhabi represented by Abu Dhabi Investment Council owns 64.8 per cent of total paid up capital of ADCB.
He told Emirates News Agency (WAM) in an interview that ADCB "registers profits in all its operations in the UAE in general and Abu Dhabi emirate in particular".
Al Suwaidi noted that the bank benefited from the amounts of money infused by the Ministry of Finance and the Central Bank into the banking sector to provide liquidity though.
"The UAE economy is prosperous and huge projects in the emirate of Abu Dhabi will boost operations of the ADCB in the next period. The Abu Dhabi economy is exceedingly growing and expanding. This will directly help the ADCB to score more profits", he said.
Al Suwaidi noted that the current global financial crisis led to vanishing of a number of banks, financial firms and companies. Although it was exceptional circumstances, he said "this revives the issue of building confidence among the banks in better manner as projected by Libor Indicator".
He added that the global financial crisis caused some financial constraint to some local banks, indicating that the central bank and the Ministry of Finance took positive action upon the instructions from Vice President and Prime Minister of UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, to provide required liquidity to the banking sector in the UAE.
Al Suwaidi attributed surge in profits to the move of some foreign banks to withdraw their deposits on maturity, a move than raised the demand for local liquidity, adding that the timely intervention of the central bank pacified the matter.
He noted that total of ADCB investments stood at Dh1.7 billion this year and the last quarter of last year, adding that the ADCB was not directly affected by Lehman Brothers crisis. Only Dh20 million investments were affected, but covered.
Al Suwaidi denied that ADCB suffered huge losses in Cheni Fund/American, reiterating that ADCB only lost US$10 million.
He added that the fourth quarter profits will be encouraging, as the bank did not suffer losses at the local and world markets, indicating the size of deposits in the last nine months ended September 30th stood at Dh13 billion. Net profits touched Dh1.78 billion at growth rate of six per cent last year, while the income without profits touched Dh1.49 billion up by 88 per cent compared to previous year.
On merging among the national banks in Abu Dhabi, Al Suwaidi welcomed whatever will strengthen the banking sector in the UAE, indicating that "merging is healthy phenomenon".
Government of Abu Dhabi represented by Abu Dhabi Investment Council owns 64.8 per cent of total paid up capital of ADCB.
