Abu Dhabi banks' profits up in H1

Profits of five banks grew to around Dh8.256bn

Abu Dhabi-based banks reported a slight increase in their net profits in the first half of 2012, extending slackening growth over the past few years because of slow credit in the wake of the 2008 global fiscal distress.

The net profits the emirate’s five banks, most of which are government-controlled, grew to around Dh8.256 billion in the first half of this year from Dh8.230 billion in the first half of 2011, an increase of 0.4 per cent.

All but one bank reported higher earnings although income growth was far below that recorded before the crisis, when it exceeded 10 per cent in most years.

Their combined assets rose by nearly 2.9 per cent to Dh775,5 billion at the end of June 2012 from Dh753.7 billion at the end of June 2011.
The increase meant that the five banks controlled nearly 45 per cent of the total assets of Dh1m725 billion controlled by the UAE’s 23 national banks and 28 foreign units.

A breakdown showed the net profits of National Bank of Abu Dhabi increased by 6.9 per cent to Dh2.08 billion while those of First Gulf Bank swelled by 10.5 per cent to Dh1.951 billion from Dh1.765 billion and the earnings of Union National Bank  by 6.3 per cent to Dh934.4 million. The net income of Abu Dhabi Islamic Bank also edged up by around 2.3 per cent to Dh1.757 billion from Dhj1.717 billion, according to a report published in the semi official daily Alittihad.

Abu Dhabi Commercial Bank was the only unit in the emirate to record a decline in net earnings to around Dh1.535 billion1.918 billion in the same period.