Friday 18 October 2019
 
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FGB MERGER ‘PRIORITY’

NBAD headquarters in Abu Dhabi, UAE

NBAD posts over $1.4bn net profit for 2016

ABU DHABI, February 1, 2017

National Bank of Abu Dhabi (NBAD) reported net profits of Dh5.296 billion ($1.44 billion) for FY’16, up 1.2 per cent year-over-year (y-o-y) as strong underlying performance was partially offset by several macro headwinds, including volatility in financial and currency markets driven by political and economic uncertainties.

Operating profits (profits before impairment and taxes) rose by 5 per cent y-o-y as non-interest income grew in line with the bank’s strategy. Additionally, expenses continued to be tightly managed throughout the year.

The bank maintained its prudent approach to risk management as challenging market conditions persisted in the UAE. Net impairment charges increased 26 per cent y-o-y to Dh1.191 billion, which was in line with guidance provided by management at the beginning of the year.

Liquidity remained strong with Loans-to-Deposits ratio of 79 per cent, and capital ratios remained robust with a Tier-1 ratio of 16.9 per cent.

Fourth quarter profits were Dh1.329 billion, up 1 per cent sequentially (q-o-q and 28 per cent y-o-y ); Y-o-Y results were driven by higher revenues, lower expenses and lower impairment charges.

Return on Shareholders’ Funds (RoSF) was 13.1 per cent in FY’16 and 12.9 per cent for 4Q’16.

Nasser Alsowaidi, chairman of NBAD, said: “2016 was a solid year for NBAD. The bank generated top and bottom line growth in difficult market conditions and, in doing so, laid the foundations for the transformational merger with FGB.”

“In addition to enhancing our revenue generating capabilities and carefully managing expenses, we maintained our strong balance sheet and capital position, which allowed the bank to consistently deliver value for our shareholders throughout the year.

“As ever, our foremost priority in 2016 was meeting the needs of our customers at home and in our international markets. Merging with FGB in the early part of 2017 will bring an even wider range of products, services and opportunities for our customers, and we are grateful to them for their support and patience as we work toward creating the UAE’s champion bank,” he added.

Abhijit Choudhury, acting group chief executive, said: “From both a full-year and fourth quarter perspective, it has been a good period for NBAD. The bank has performed in line with market expectations and our previous guidance, and we have made significant progress towards our merger with FGB.”

“Over the course of the year, we built real momentum in our Global Wholesale and Global Retail and Commercial businesses, particularly within fee-generating business lines. Combined with our expense discipline, robust capital, strong liquidity and prudent risk management, this momentum has enabled NBAD to deliver strong and steady financial performance.

“Our priority for the year ahead is to bring together NBAD with FGB. Central to that is ensuring our existing customers and those of FGB experience a smooth and transparent integration. Ultimately, this merger will create a stronger bank for the UAE, and our customers will benefit from the best of both banks,” he added. – TradeArabia News Service




Tags: National Bank of Abu Dhabi | NBAD | 2016 profits |

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