NBAD posts 2.5% rise in Q2 profit

National Bank of Abu Dhabi, the UAE's largest lender by market value reported on Wednesday a 2.5 per cent increase in quarterly profit due to higher interest income and income from Islamic financing, beating forecasts.   

NBAD made a net profit of Dh1.03 billion ($280.4 million) in the second quarter, up from Dh1 billion a year earlier, the bank said in a statement.   

Analysts had forecast an average profit of Dh972.86 million in a Reuters poll.    

However, net profit for the first half fell 3.9 per cent to Dh1.95 billion compared to first half last year.   

The bank booked net impairment charges of Dh696 million in the first half of 2011. Non-performing loans increased to Dh4.17 billion, accounting for 2.65 per cent of the loan book.   

"Our focus remains on top-line operating revenues which are up 10 per cent year on year," CEO Michael Tomalin said in the statement.   

Operating income for the quarter reached Dh2 billion, up 13 per cent over the same period last year.   

Loans and advances grew to Dh153 billion at the end of the first half, up 13.3 per cent from a year earlier. Deposits rose 31.2 per cent to Dh147.2 billion. Quarterly figures were not provided.

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