Tuesday 19 March 2024
 
»
 
»
Story

Alsowaidi and Choudhury

NBAD Q3 profit stays flat at $359m

ABU DHABI, October 26, 2016

National Bank of Abu Dhabi (NBAD) reported net profits of Dh1.320 billion ($359.38 million) for the third quarter of this year, flat year-over-year (y-o-y) and down 4 per cent sequentially.

During the period, strong underlying growth trends and solid investment income were offset by a seasonal slowdown and ongoing challenging market conditions, the bank said.

For the 9-month period till September 30, net profits were down 5 per cent y-o-y due to lower investment gains and higher impairment charges, despite growth in strategic businesses and overall stronger operating profits, it said.

Expenses were down 2 per cent y-o-y and down 1 per cent q-o-q in Q3 as the bank continues to tightly control expenses whilst also investing in talent, operations and infrastructure.

Loans were Dh205 billion, up 1 per cent sequentially and down 3 per cent y-o-y.  Lending growth in Q3 was led by global wholesale, while retail lending grew both q-o-q and y-o-y. CASA improved 4 per cent on a y-o-y basis while the bank continued to attract more deposits from its international clients, it said.
 
In Q3, the bank continued to maintain its strong liquidity and robust capital positions, with a Tier-1 ratio of 15.8 per cent and strong credit ratings.

Return on shareholders’ funds (RoSF) Q3 and the 9-month period was 13.4 per cent as it continues to be impacted by challenging market conditions, the bank added.

“NBAD continues to perform well, with strong underlying growth and disciplined cost management being two highlights this quarter. As we progress towards our merger with FGB, it is vital that we maintain stability of funding and consistent growth of the core business, which I am confident we will achieve," said Nasser Alsowaidi, chairman.
 
“Our merger with FGB is progressing well.  A new leadership team has been appointed for the combined bank, and we are beginning to put in place the strategy which will ensure continued growth and enhanced value for all of NBAD’s stakeholders going forward,” he said.

"We delivered a solid set of results in the third quarter reflecting continued underlying strength in our core businesses. We achieved this performance during a period of seasonal slowdown and ongoing challenging market conditions, whilst we continued to maintain  expense discipline along with strong capital and liquidity positions," said Abhijit Choudhury, acting group chief executive.

"In Global Wholesale Banking, we delivered growth across strategic flow businesses as our transformation towards an originate to distribute model continues to take effect.  Additionally, our Retail lending business continued to outperform in the domestic market.
 
“Looking ahead to the rest of the year, we are aiming to continue to deliver solid underlying net profit growth while maintaining our conservative risk profile. The core businesses will continue to drive growth, and we expect to cross a number of important integration milestones in the merger with FGB, which is on track to complete in the first quarter of 2017,” he added. -TradeArabia News Service




Tags: abu dhabi | profit | NBAD |

More Finance & Capital Market Stories

calendarCalendar of Events

Ads