NBAD Q3 net up 12pc on forex gains
Abu Dhabi, October 23, 2011
National Bank of Abu Dhabi, the largest lender by market value in the UAE, posted a 12.1 per cent jump in third-quarter net profit as foreign exchange gains rose more than three-fold, helping beat analysts’ forecasts.
NBAD, majority-owned by the Abu Dhabi government, made a net profit of Dh1.03 billion ($280.4 million) in the third quarter, compared with Dh919.75 million year-ago, a statement from the bank said on Sunday.
Net foreign exchange gains for the quarter amounted to Dh206.6 million, against Dh66.3 million a year earlier, the statement showed.
Analysts forecast an average profit of Dh996.71 million in a Reuters poll earlier this month.
'NBAD has delivered healthy profits on the back of strong and prudent balance sheet growth in a year characterised by multiple economic and political challenges,' Nasser al Sowaidi, chairman said in the statement.
Net impairment charges were Dh321 million for the third quarter including additional collective provision of 87 million. That compared with Dh319.5 million for the year-ago period.
Non-performing loans increased to Dh4.53 billion representing 2.83 per cent of the loan book.
NBAD, the first Gulf bank to tap Samurai bonds, expects non-performing loans (NPLs) to spike in 2011 but sees its lending surpassing the market growth rate, its chief executive told Reuters in July.
Loans and advances continued to grow in the third quarter of 2011 by another 1.9 per cent to Dh155.8 billion, up 13.9 per cent from December 31 2010.
Net profit for the nine-month period was Dh2.98 billion, up 1.1 per cent over the same period last year.
NBAD shares were halted for trading on Sunday prior to the announcement of results. They have gained 4 per cent year-to-date. – Reuters