Gross interest and Islamic financing income grew 11 per cent to Dh9.611 billion, mainly driven by higher benchmark rates.
Overall ADCB reported strong growth in
gross interest and Islamic financing income of AED9.611 billion (up 11 percent) and double digit return on tangible equity, while net profit was impacted by an increase in cost of funds and lower non-interest income.
Gross interest income recorded an increase of 32% whereas Fees, Commissions and Exchange earnings recorded an increase of 7% compared to the same period last year.
Gross interest income of the bank has grown strongly so far this year, though funding cost has increased more than expected as a result of increased competition for deposits in the market.'
Consolidated
gross interest income rose to P8.4 billion last year, 16 percent up from the previous year.
Gross interest income was widely expected to continue to decline for the second consecutive quarter on the back of lower Saibor rates and stagnant advances compared to the previous quarter.
Compared with the first quarter 2014, however, the
gross interest received and
gross interest paid during the first quarter of 2015 decreased by 0.01 per cent and 3.74 per cent respectively, resulting in a growth of 1.5 per cent in net interest income.
Lancashire County Cricket Club has launched a five-year fixed-term retail bond offering 7%
gross interest per year for investments from PS1,000.
Main driver for increase in net profit was
gross interest income, which contributed to 67pc of operating income.
For example, according to SavingsChampion.co.uk, the market-leading children's account is the Halifax Kids' Regular Saver account, which pays 6 per cent
gross interest a year.
It said that five years ago, the average no-notice account paid a rate of 4.08%, and to raise pounds 100 in
gross interest would have required a deposit of pounds 2,451.
