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UAE Lender NBAD Posts 17.5% Q2 Net Profit Gain, Beating Forecasts

UAE Lender NBAD Posts 17.5% Q2 Net Profit Gain, Beating Forecasts

NBAD made a net profit of Dhs1.42 billion ($386.6 million) in the three months to June 30, the bank said in a statement.

National Bank of Abu Dhabi, the largest lender in the United Arab Emirates, on Tuesday reported a 17.5 per cent rise in second-quarter net profit, beating analysts’ average estimates.

NBAD, almost 70-per cent owned by Abu Dhabi’s government, made a net profit of Dhs1.42 billion ($386.6 million) in the three months to June 30, up from Dhs1.21 billion in the corresponding period of 2013, the bank said in a statement.

Six analysts polled by Reuters earlier this month forecast an average net profit of Dhs1.30 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 Dhs830 million in the second quarter, as fees and commissions jumped 26.8 per cent.

The bank booked loan impairments totalling Dhs215 million, lower than the Dhs301 million booked in the second quarter last year.

Loans and advances grew 4.8 per cent year-on-year to Dhs181.7 billion, although year-to-date NBAD’s lending total was down 1.1 per cent. Deposits stood at Dhs237.4 billion on June 30, up 8.2 per cent year-on-year and 12.5 per cent year-to-date.

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