Abu Dhabi Commercial Bank, the UAE’s third-largest lender, reported an almost 36 per cent jump in its nine-month net profit thanks to lower impairment charges as the UAE economy continued to recover from the Covid-19 pandemic.
The total profit attributable to equity holders of the bank for the period ending September 30 climbed to Dh3.8 billion ($1.03bn), the lender said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Impairment charges during the period dropped 35 per cent to Dh1.98bn, while net fees and commission income rose 24 per cent to Dh1.38bn.
“Despite the subdued macroeconomic conditions, the bank capitalised on an active lending pipeline and has extended Dh28bn in new credit this year to targeted economic sectors in line with our five-year growth strategy,” said Ala'a Eraiqat, ADCB's group chief executive.
Banks in the region are reporting higher profits as they book lower loan provisions behind a rapidly recovering economy. The UAE's non-oil economy is expected to expand about 4 per cent this year and in 2022 while overall economic growth is expected to be 3.8 per cent next year, the UAE Central Bank said in June.
ADCB's total assets climbed 6 per cent to Dh432bn during the nine-month period. Net loans and advances remained stable at Dh242bn, while deposits from customers grew 5 per cent to Dh256bn.
The bank, which is one of the biggest creditors of troubled NMC Group, said that its proactive approach to the healthcare company led to a significant positive development during the third quarter as NMC's creditors voting overwhelmingly in favour of the proposed debt restructuring plan, Mr Eraiqat said.
Last month, creditors of NMC Healthcare approved its proposed deeds of company arrangement restructuring process, a move that allows 34 companies of the UAE’s biggest healthcare provider to exit administration. NMC secured approval for its restructuring proposal from 95 per cent of its creditors.
“As a result of the creditors’ recent vote in September, ADCB is expected to receive approximately 39 per cent of exit instruments in a new $2.25bn facility – a debt claim sized to the expected future value of NMC Group. Given these material developments, we consider the provisions for NMC Group recorded to date to be at an appropriate level.”
However, the bank’s three month profit, slid 7 per cent to Dh1.27bn as impairment charges rose during the period.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The biog
Name: Greg Heinricks
From: Alberta, western Canada
Record fish: 56kg sailfish
Member of: International Game Fish Association
Company: Arabian Divers and Sportfishing Charters
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
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