NBAD Q2 net profit falls 9.3%

LITTLE EXPOSURE: UAE's biggest bank by market value, National Bank of Abu Dhabi, confirms relatively little exposure to troubled Saudi conglomerates Algosaibi and Saad. (Getty Images)

National Bank of Abu Dhabi, the biggest UAE bank by market value, on Tuesday posted a 9.3 percent fall in net profit in Q2 to AED907 million ($247 million).

While the numbers beat analysts’ expectations the bank confirmed it booked AED500 million worth of provisions in H1, compared to AED145 million in the same period in 2008. There was no quarter by quarter break down of the numbers.

NBAD said it has a $7.5 million exposure to Ahmad Hamad Algosaibi & Bros and a $3.4 million exposure to Saad Group.

Total assets increased 12.3 percent and 9.4 percent over Q1 2009 and Q2 2008 respectively, to reach AED181 billion.

Customer deposits, including AED5.6 billion received from the Ministry of Finance in Q4 2008, showed an improvement of 14.1 percent quarter-on-quarter and an increase of 25.1 percent to AED112 billion compared with H1 2008.

Loans and advances to customers rose by 16.7 percent over the 1st half of 2008 to AED124 billion and 7.2 percent compared with Q1 2009.

Chairman of NBAD, H.E. Nasser Ahmed Khalifa AlSowaidi said, "Despite the prevailing uncertain global market conditions, NBAD achieved good financial results for the second quarter and first half, reflecting the resilience of the Group's diversified business model and prudent risk policies.

However, he added: ''The global outlook remains uncertain, but the strong investment in infrastructural projects by the government, is expected to support the economic growth of Abu Dhabi and counter, to some extent, the slowdown in the economy."

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