NBAD Q3 net up 9% to Dh1.12bn

Beats analyst estimates; posts strong deposit growth due to government deposits

National Bank of Abu Dhabi (NBAD), the largest lender by market value in the UAE, beat analyst estimates by reporting a 9.1 rise in third-quarter net profit, boosted by investment gains.

NBAD, majority-owned by the Abu Dhabi government, made a net profit of Dh1.12 billion ($307 million) in the third quarter compared with Dh1.03 billion a year ago, a statement from the bank said on Tuesday.

Profit for the first nine months of this year totalled Dh3.21 billion, up 7.6 per cent from a year earlier.

Non-interest income jumped 28.1 per cent in the third quarter as the lender booked Dh190.7 million of net gains on investments versus a loss of Dh27.8 million dirhams a year ago.

Analysts had forecast an average quarterly profit of Dh1.076 billion in a Reuters poll earlier this month.

"We experienced continued growth in the third quarter and are on track to meet our expectations for the full year," chief executive Michael Tomalin said in a statement.

The bank booked net loan impairment charges of Dh366.8 million in the third quarter compared to Dh320.6 million a year ago. Total impairments stood at Dh971 million in the first nine months of this year, versus Dh1.017 billion in the same period last year.

Loans and advances stood at Dh163 billion at the end of September; loan growth has been slow at 2.1 per cent year-to- date, the statement said.

But deposits grew strongly to Dh194 billion, up 27.5 per cent from end-December 2011. They grew 21 per cent in the third quarter alone because of the receipt of government deposits, some of which may flow back during the fourth quarter.

"Top line growth was solid, and our expenses reflect the continuing investments we are making in our people, technology and new business opportunities. Both our liquidity and capital positions remain strong," Tomalin said.


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