NBAD’s Q1 Net Profit Increases 9 Per Cent

ABU DHABI - National Bank of Abu Dhabi, the nation’s second-largest national bank in terms of assets, beat analysts’ expectations with a first-quarter net profit of Dh770 million, an increase of nine per cent over the same period last year.



By Haseeb Haider

Published: Wed 29 Apr 2009, 1:11 AM

Last updated: Sun 5 Apr 2015, 9:29 PM

First-quarter operating income at the bank, known as NBAD, grew by 12 per cent to Dh1.44 billion from the same three months of 2008. NBAD’s quarterly return on equity was 21.5 per cent – less than its medium-term target of 25 per cent but consistent with its annual target for 2009 of 20 per cent, the company said on Monday.

The growth in the bank’s first-quarter profit reflects its effective management of its business amid the financial crisis, said Mohammad Ali Yasin, Chief Executive Officer of Shuaa Securities. The first-quarter results have laid the foundation for robust earnings for the remainder of the year, he said.

NBAD’s loans and advances swelled by 25 per cent to Dh116 billion for the three months ending March 31, up from Dh93 billion in the first quarter of 2008. Its total assets grew by two per cent to Dh161 billion from Dh157 billion in the first quarter of 2008, but total assets shrank by two per cent from the October-Decembwwer quarter in a sign of the economic slowdown.

NBAD augmented its provisions for bad loans by 13 per cent compared to the quarter ending in December.

Customer deposits, meanwhile declined by five per cent from the previous quarter. Yasin said that the slippage in deposits reflected tough competition against other banks offering higher returns.

NBAD reclassified a Dh4 billion deposit from Abu Dhabi government as equity during the quarter, increasing its capital base. Its capital adequacy ratio stood at a robust 18 per cent by the end of March.

The bank’s organic growth will not be constrained by the current uncertain market conditions, as it has sufficient capital to fund its growth and commitments, said NBAD Chief Executive Michael Tomalin. However, he anticipated future growth to be modest and that NBAD would keep its credit expansion limited to the extent of available funding.

NBAD has branches in Oman, Kuwait, Bahrain, Egypt, Libya, and Sudan and operations in London, Paris, and Geneva and Washington D.C.

· haseebhaider@khaleejtimes.com


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