NBAD Q4 profit edges down on impairments
Abu Dhabi, January 31, 2012
National Bank of Abu Dhabi (NBAD) on Tuesday posted a one per cent decline in fourth quarter net profit, missing analysts' forecasts, as the UAE lender was hurt by rising impairment charges.
The country's largest bank market value, made a net profit of Dh724 million ($197.27 million) for the fourth quarter, compared with 732 million for the year-ago period, it said in a statement.
Full year profit stood Dh3.71 billion, up 0.7 per cent from Dh3.68 billion year-ago.
Analysts forecast an average profit of Dh756.43 million in a Reuters poll earlier this month.
Nasser Alsowaidi, chairman of NBAD said, “The bank continues to deliver a strong and sturdy performance in the face of continued political and economic uncertainties, regionally and globally. The Group’s business model and its professional management are its core strengths.”
"2011 has been one of the most difficult years ever in global banking. The region has also been affected by the Arab Spring, low interest rates and the Euro crisis," Michael Tomalin, NBAD's chief executive officer said in the statement.
Net impairment charges for the fourth quarter stood at Dh482 million, up 13.7 per cent over the same quarter last year. Full year charges reached Dh1.49 billion.
"This year we have been particularly cautious regarding provisions, both for our properties and our credit portfolio, taking the general provisions to performing credit risk-weighted assets to the 2014 Central Bank target of 1.5 per cent," Tomalin said.
Loans and advances stood at Dh159.5 billion in 2011, up 16.6 per cent over 2010, while deposits rose 23.3 per cent to reach Dh151.8 billion.
The Board of Directors has recommended a cash dividend of 30 per cent and stock dividend of 30 per cent for the financial year ended 31 December 2011.
NBAD plans to open its first office in Malaysia and a representative office in Shanghai in the first quarter this year. – Reuters