National Bank of Abu Dhabi Plans Bonds Sales as Net Climbs 55%

National Bank of Abu Dhabi PJSC, the United Arab Emirates’ second-biggest lender by assets, plans to sell bonds after reporting a higher-than-expected increase in fourth-quarter profit.

Net income rose to 1.12 billion dirhams ($305 million) from 724 million dirhams a year earlier, the Abu Dhabi-based bank said today in a statement. That beat the median 878 million- dirham estimate of six analysts surveyed by Bloomberg. Full-year profit climbed 17 percent to 4.3 billion dirhams, it said.

“Our growth was a result of the success of our diversified business model, investment gains driven by favorable financial market conditions and successful hedging strategies,” Chief Executive Officer Michael Tomalin said in the statement.

Banks in the U.A.E. are recovering from the credit crisis, which slowed lending, hurt investment banking and sparked a crash in property prices. National Bank reported full-year investment gains of 537 million dirhams, while impairment charges fell 24 percent to 365 million dirhams in the fourth quarter.

Net interest income and net income from Islamic financing for the year rose 5 percent to 6.1 billion dirhams. National Bank’s non-performing loans increased to 3.4 percent of total lending, or 5.8 billion dirhams by the end of 2012.

Lending was “slower than anticipated” and grew 3.2 percent to 164.6 billion at the end of the year, it said.

Bond Sales

National Bank will seek shareholder approval on March 12 for the sale of $500 million of convertible bonds, it said in a separate statement today. The lender will also seek approval to raise the size of its euro medium-term note program to $7.5 billion from $5 billion, the size of its Malaysian ringgit program to 5 billion ringgit ($1.6 billion) from 3 billion ringgit and its samurai program to 150 billion yen ($1.7 billion) from 40 billion yen.

In December, the bank registered to sell as much as 40 billion yen of Samurai bonds and the same amount of uridashi bonds, according to filings with Japan’s Finance Ministry.

The board proposed a 35 fils amsg share cash dividend and a stock dividend of one bonus share for every 10 held for 2012. National Bank’s shares were suspended today pending the earnings announcement. They have gained 7.8 percent this year.

To contact the reporter on this story: Stefania Bianchi in Dubai at sbianchi10@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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