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Business Home > Archive
NBAD posts Dh927m net profit in Q1

Haseeb Haider / 20 April 2011

ABU DHABI - Net profit of the National Bank of Abu Dhabi, or NBAD, fell 10 per cent year-on-year to Dh927 million in the first three months of the year, on “higher” provisions. However, earnings surged 27 per cent quarter-to-quarter.

“The annualised return on shareholders’ funds for the quarter is 17.2 per cent in line with the targets for 2011,” the UAE’s second-largest lender by assets said in a regulatory filing.

NBAD said its customer deposits grew 23 per cent year-on-year to Dh141.1 billion, and 14 per cent compared to year-end figures.

Total assets reached Dh233.5 billion at the end of the quarter, 10.4 per cent up on December 31, 2010 and 16.3 per cent up on March 31, 2010, mainly driven by the growth in deposits.

Loans and advances to customers increased to Dh143.2 billion, up 4.7 per cent on December 31, 2010, and 7.2 per cent on March 31, 2010.

“Although net profits for the current quarter are below the first quarter of 2010 as a result of higher provisions, top line revenues, operating profits, assets, loans and deposits are all at record levels,” NBAD Group Chief Executive Michael Tomalin.

Operating income for the quarter reached Dh1.881 billion, up 6.2 per cent compared with Dh1.772 billion to the corresponding period of 2010, and higher by 3.5 per cent over the fourth quarter of last year. Non-interest income in the quarter was lower by 5.6 per cent to Dh503 million.

Net interest margin was 2.48 per cent in the first quarter of 2011, almost matching the levels recorded in the same period last year, although lower as compared to 2.57 per cent for the entirety of 2010. Operating expenses for the quarter were at Dh566 million, higher by 14.6 per cent compared with the corresponding period, but lower by 10.4 per cent compared to the last quarter of 2010.

“Despite NBAD’s good performance, we remain cautious to the challenges posed by the regional and global environment. Longer term prospects for the Bank remain clear and bright as we continue to implement our strategies aligned with the growth of Abu Dhabi and the UAE,” NBAD Chairman Nasser Alsowaidi said.

The gross impairment charge for the quarter was Dh446 million, which after Dh81 million of recoveries reduced to a net charge of Dh365 million, comprising of collective provisions of Dh84 million, net specific charges of Dh261 million and other provisions for impaired assets of Dh20 million.



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