National Bank of Abu Dhabi (NBAD) beat forecasts with a 10-per cent rise in second-quarter profit on Tuesday helped by higher revenues and lower provisions.
The largest bank in the UAE by market value made a profit of Dh1 billion for the three months to June 30.
That was up from Dh906.5 million a year earlier and topped a forecast of Dh977.2m from analysts.
"These are a strong set of results in difficult markets reflecting the resilience and strength of the bank," NBAD Chief Executive Michael Tomalin said in a statement.
Net impairment charges stood at Dh463m at the end of the first half after the bank booked Dh238m in the second quarter.
NBAD booked provisions of Dh285.5m in second quarter last year and Dh500m in first half of 2009.
Loans grew 8.7 per cent to Dh135bn from Dh124bn a year earlier. Deposits stood at Dh112.2bn versus Dh111.7bn.
Non-performing loans (NPLs) in the first six months of 2010 increased by Dh386m to Dh2.073bn, representing an NPL ratio of 1.5 per cent.
Net income in the second quarter jumped 18.4 per cent to Dh1.22bn versus a year ago while fee and commission income edged up 4 per cent to Dh304.60m.
"The overall results are strong on revenues but they still reflect a weak lending environment because loans grew only 1 percent this quarter," said Sofia al Boury, assistant vice-president, research at Shuaa Capital.
Shares in NBAD ended 0.45 per cent lower on the Abu Dhabi bourse before the results were published.
NBAD posted a 34 per cent rise in first quarter profit on loan growth and income from investments.
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