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Tue 23 Apr 2013 09:46 PM

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National Bank of Abu Dhabi Q1 net profit up 36%

United Arab Emirates' largest lender by market value posted net profit of $384m

National Bank of Abu Dhabi Q1 net profit up 36%

Higher income from investments and fees helped National Bank of Abu Dhabi, the United Arab Emirates' largest lender by market value, to a 35.5 percent jump in first-quarter net profit, the bank said on Tuesday.

The bank posted net profit of 1.41 billion dirhams ($384 million) in the first three months of 2013, beating the average forecast of 1.09 billion dirhams in a Rueters poll of analysts.

Impairment charges for the first quarter of this year were 322 million dirhams, up 3 percent higher on the corresponding period last year.

Non-interest income grew 70.9 percent to 974 million dirhams, which the bank attributed to a combination of strength in financial markets and successful hedging strategies.

Net interest income and net income from Islamic financing increased 5.3 percent against last year and net fees and commissions grew 8.9 percent to 414 million dirhams.

Loan growth continued to be lower than expected, the bank said, but deposits rose 9.6 percent year on year, helped by net inflows of government deposits.

The bank, which this month appointed Australia and New Zealand Banking Group's Alex Thursby to take over as new chief executive in July, added that it has now fully repaid 5.6 billion dirhams of finance ministry subordinated notes after repaying 1.5 billion dirhams in the first quarter and a further 1.5 billion dirhams at the start of the second quarter.

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