NBAD Q3 net up 9pc on investment gains
Abu Dhabi, October 23, 2012
National Bank of Abu Dhabi, the largest lender by market value in the UAE, beat analyst estimates by reporting a 9.1 rise in third-quarter net profit, boosted by investment gains.
NBAD, majority-owned by the Abu Dhabi government, made a net profit of Dh1.12 billion ($307 million) in the third quarter compared with Dh1.03 billion a year ago, a statement from the bank said on Tuesday.
Profit for the first nine months of this year totalled Dh3.21 billion, up 7.6 per cent from a year earlier.
Non-interest income jumped 28.1 per cent in the third quarter as the lender booked Dh190.7 million of net gains on investments versus a loss of Dh27.8 million a year ago.
Analysts had forecast an average quarterly profit of Dh1.076 billion in a Reuters poll earlier this month.
"We experienced continued growth in the third quarter and are on track to meet our expectations for the full year," chief executive Michael Tomalin said in a statement.
The bank booked net loan impairment charges of Dh366.8 million in the third quarter compared to Dh320.6 million a year ago. Total impairments stood at Dh971 million in the first nine months of this year, versus Dh1.017 billion in the same period last year.
Loans and advances stood at Dh163 billion at the end of September; loan growth has been slow at 2.1 percent year-to- date, the statement said.
But deposits grew strongly to Dh194 billion, up 27.5 per cent from end-December 2011. They grew 21 per cent in the third quarter alone because of the receipt of government deposits, some of which may flow back during the fourth quarter.
"Top line growth was solid, and our expenses reflect the continuing investments we are making in our people, technology and new business opportunities. Both our liquidity and capital positions remain strong," Tomalin said.
Nasser Alsowaidi, chairman of NBAD, said: “The bank continues to deliver a strong performance in an ever dynamic and challenging banking environment. We continue to focus on our long-term strategy and this year’s expansion of our international footprint in Asia is in line with our vision to be the World’s Best Arab Bank.” – TradeArabia News Service & Reuters
More Finance & Capital Market Stories
- More support for Islamic banking urged
- Bahrain to set new takaful rules by year-end
- Oman fiscal surplus widens to $1.4bn
- Al khaliji opens new branch in Doha
- Bayzat launches online DBR calculator
- Dubai bourse tops 3,000 for first time in 5 years
- Bahrain mulls solvency rules for Takaful industry
- LuLu Exchange opens 3rd branch in Bahrain
- Saudi economic growth picks up in Q3
- GIH picks ex-Barclays banker as investment head