National Bank of Abu Dhabi, the largest lender in the United Arab Emirates, on Tuesday reported a 17.5 percent rise in second-quarter net profit, beating analysts’ average estimates.
NBAD, almost 70 percent owned by Abu Dhabi’s government, made a net profit of AED1.42 billion ($386.6 million) in the three months to June 30, up from AED1.21 billion in the corresponding period of 2013, the bank said in a statement.
Six analysts polled by Reuters earlier this month forecast an average net profit of AED1.30 billion.
Chief Executive Alex Thursby had warned after the bank’s first-quarter earnings that fierce competition and global interest rate pressure was starting to undermine the profitability of banks in the UAE.
However, he said on Tuesday: “Our results in the second quarter of 2014 provide further evidence that our strategy is working. We are seeing positive underlying trends across our businesses, particularly our fee generating businesses.”
Non-interest income rose 20.1 percent year-on-year to AED830 million in the second quarter, as fees and commissions jumped 26.8 percent.
The bank booked loan impairments totalling AED215 million, lower than the AED301 million booked in the second quarter last year.
Loans and advances grew 4.8 percent year-on-year to AED181.7 billion, although year-to-date NBAD’s lending total was down 1.1 percent. Deposits stood at AED237.4 billion on June 30, up 8.2 percent year-on-year and 12.5 percent year-to-date.
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