National Bank of Abu Dhabi (NBAD) on Tuesday reported a slight increase in third quarter net profit, missing analysts forecasts as it continued to book provisions.
The lender, the largest bank by market value in the UAE made a net $250.5 million in the three months to Sept 30, up from $248.8 million in the same period last year.
Analysts polled by Reuters had on average estimated third quarter profit of $267.4 million.
Michael Tomalin NBAD’s chief executive in a statement to the Abu Dhabi bourse said: “We have continued to build up our provisions and have maintained collective provisions at 1.25 percent of risk weighted assets.”
Net impairments in the quarter reached $87.1 million and cumulatively totalled $213.1 million for the first nine months of this year. Collective provisions stood at $468.3 million, the bank said.
Loans and advances totalled $37.8 billion at the end of September 2010, up 8 percent over the first nine months of last year, while deposits reached $32.7 billion, up 15 percent over last year.
Abu Dhabi controlled NBAD issued the first Malaysian ringgit Islamic bond from a Gulf bank earlier this year and is keen to expand its Asian operations with a new bank planned to open in Malaysia in 2011. (Reuters)
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