NBAD beats forecasts with 17.5pc profit gain
Abu Dhabi, July 22, 2014
National Bank of Abu Dhabi , the largest lender in the UAE, on Tuesday beat analysts' estimates with a 17.5 per cent rise in second-quarter net profit, with higher fees and investment gains boosting income.
NBAD, almost 70 per cent owned by Abu Dhabi's government, made a net profit of Dh1.42 billion ($387 million) in the three months to June 30, up from Dh1.21 billion in the corresponding period of 2013, the bank said in a statement.
Six analysts polled by Reuters had forecast an average net profit of Dh1.3 billion.
Chief Executive Alex Thursby had warned after the bank's first-quarter earnings that fierce competition and global interest rate pressure was starting to undermine the profitability of banks in the UAE.
However, he said on Tuesday: "Our results in the second quarter of 2014 provide further evidence that our strategy is working. We are seeing positive underlying trends across our businesses, particularly our fee generating businesses."
Non-interest income rose 20.1 per cent year-on-year to Dh830 million in the second quarter, as fees and commissions jumped 26.8 per cent.
The bank booked loan impairments totalling 215 million dirhams, lower than the Dh301 million booked in the second quarter last year.
Loans and advances grew 4.8 per cent year-on-year to Dh181.7 billion, although year-to-date NBAD's lending total was down 1.1 per cent. Deposits stood at Dh237.4 billion on June 30, up 8.2 per cent year-on-year and 12.5 per cent year-to-date. - Reuters