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Wed 28 Apr 2010 05:32 AM

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NBAD posts record single quarter profits

Lender said that the figures represent a 34% jump on previous year's earnings.

The National Bank of Abu Dhabi (NBAD) posted a net profit of Dh1.03 billion ($280.4 million) in the first quarter of 2010, the highest figure ever achieved by the bank in a single quarter.

In a statement posted on the Abu Dhabi Securities Exchange website, NBAD said that the figures represented a 34 percent jump from 2009’s Dh770 million ($209.64 million).

The bank also said that it had earned a net profit of Dh429 million ($116.8 million) in the last quarter of 2009.

The bank’s net impairment charges for the first quarter of 2010 were Dh225 million ($61.2 million), while collective provisions made up Dh55 million ($14.9 million) of that amount.

In its statement, the bank said that while specific provisions and write offs came in at Dh208 million ($56.6 million), they were offset by recoveries of Dh38 million ($10.3 million)

NBAD also had a non performing loan ratio (NPL) of 1.3 percent at the end of March. It said that out of the total loan portfolio of Dh134 billion ($36.4 billion), Dh1.78 billion ($484.6 million) of loans were in the impaired loans category.

In a media conference call, Michael Tomalin, NBAD group chief executive, told Khaleej Times that the NPL ratio might rise by two percent by the end of the year, but that the bank had made provisions for this.

The bank also saw a 23 percent rise in total revenue from diversified income sources in comparison to 2009 figures, with Dh1.77 billion ($481.9 million) being made in the first quarter of 2010. This also marked an 11 percent rise from the first quarter of the previous year.

NBAD’s annualised diluted earnings for the recently concluded quarter was Dh1.67 ($0.45) per share.

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