NBAD Net Profit Jumps 9% To Dh 1.12b On Higher Revenues

The second biggest lender by assets, National Bank of Abu Dhabi ‘s profit soared nine per cent year-on-year to Dh1.125 billion in the third quarter.

In the first nine months of the year, the lender’s earning grew 7.6 per cent to Dh3.212 billion for the first three quarters of 2012 when compared with the same period a year earlier.

Earning rose on increase in interest and non-interest incomes during the period, as operating income increased by 7.8 per cent to Dh6.351 billion in the nine months of 2011.Operating income of Dh2.251 billion for the third quarter was higher than the corresponding period a year ago of 12.5 per cent.

Net interest income and net income from Islamic financing grew by 5.3 per cent, net fees and commissions by 11.9 per cent and net investment income 140 per cent from a low base. Non-interest income of Dh1.812 billion was higher by 14.8 per cent year-on-year in the nine months of 2012. Nasser Al Sowaidi, chairman of NBAD said: “The bank continues to deliver a strong performance in an ever dynamic and challenging banking environment.”

The net interest margin declined to 2.2 per cent for the nine months of 2012, lower than 2.5 per cent for the corresponding nine months of 2011 due to an increase in short-dated secured lending and a more liquid balance sheet.

Total Assets exceeded the Dh300 billion for the first time to reach Dh305 billion as of 30 September 2012, up 19.1 per cent on December 31, 2011 and up 25.8 per cent on 30 September 2011.

Loans and advances to customers were Dh163 billion as of 30 September 2012. Loan growth for the Group has been slow at 4.6 per cent year-on- year and 2.1 per cent year to date.

Customer deposits were Dh194 billion, up 27.5 per cent in the nine months of 2012 and were higher by 35.9 per cent as compared to 30 September 2011.

During the third quarter, deposits increased by Dh33 billion or 20.7 per cent, mainly due to a receipt of significant amount of government deposits, some of which may flow back during the fourth quarter.

These deposits have been placed across various classes of liquid assets on similar tenors. Operating expenses for the first nine months of 2012 were up 15 per cent to Dh2.079 billion, reflecting ?continued investments in our business.?

MichaelTomalin, NBAD Group chief executive officer, said: “The bank saw continued growth in the third quarter and are on track to meet our expectations for the full year. Both our liquidity and capital positions remain strong.”

NBAD ‘s international footprint now boasts 55 units across 14 countries with its offices in Shanghai and Kuala Lumpur, the latest additions.

At the end of September 2012, our domestic network spanned 122 branches and cash offices, over 566 ATMs and 11 business banking centres.

NBAD is rated senior long term/short term A+/A-1 by Standard and Poor’s, Aa3/P1 by Moodys and AA-/F1+ by Fitch giving it one of the strongest combined rating of any Middle Eastern financial institution.

Khaleej Times