Abu Dhabi’s NBAD, FGB Post Rise in Profit on U.A.E. Lending
National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC (FGB), Abu Dhabi’s biggest and third-biggest banks, reported a rise in second-quarter profit as they increased lending in the United Arab Emirates.
National Bank of Abu Dhabi posted a 2 percent gain in net income to 1.05 billion dirhams ($285 million) from a year earlier, meeting analysts’ estimates, while First Gulf Bank posted a better-than-expected 14 percent jump to 1.02 billion dirhams, the banks said in separate statements today.
U.A.E. banks are recovering after the global financial crisis slowed lending, hurt investment banking revenue and led to an increase in bad loans. Lending by U.A.E.’s banks, excluding provisions, rose 0.3 percent in the five months through May, while customer deposits increased 5.2 percent, according to data from the country’s central bank.
Abu Dhabi Commercial Bank PJSC, Abu Dhabi’s second-largest lender, reported a 45 percent fall in net income to 733 million dirhams as a gain from the sale of its stake in Malaysian bank RHB Capital Berhad last year wasn’t repeated.
National Bank of Abu Dhabi reported a 2.1 percent rise in lending in the six months through June from December. Abu Dhabi Commercial Bank said lending fell 1 percent, while First Gulf Bank’s loan book expanded 6 percent.
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