National Bank of Abu Dhabi (NBAD) on Tuesday posted a one percent decline in fourth quarter net profit, missing analysts’ forecasts, as the UAE lender was hurt by rising impairment charges.
The country’s largest bank by market value made a net profit of AED724m ($197.27m) for the fourth quarter, compared with AED732m for the year-ago period, it said in a statement.
Full year profit stood AED3.71bn, up 0.7 percent from AED3.68bn year-ago.
Analysts forecast an average profit of AED756.43m in a Reuters poll earlier this month.
“2011 has been one of the most difficult years ever in global banking. The region has also been affected by the Arab Spring, low interest rates and the Euro crisis,” Michael Tomalin, NBAD’s chief executive officer said in the statement.
Net impairment charges for the fourth quarter stood at AED482m, up 13.7 percent over the same quarter last year. Full year charges reached AED1.49bn.
“This year we have been particularly cautious regarding provisions, both for our properties and our credit portfolio, taking the general provisions to performing credit risk-weighted assets to the 2014 Central Bank target of 1.5 percent,” Tomalin said.
Loans and advances stood at AED159.5bn in 2011, up 16.6 percent over 2010, while deposits rose 23.3 percent to reach AED151.8bn.
NBAD plans to open its first office in Malaysia and a representative office in Shanghai in the first quarter this year.
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