National Bank of Abu Dhabi PJSC posted a 1 percent increase in second-quarter profit as costs rose at the United Arab Emirates’ biggest bank.
Net income advanced to 1.45 billion dirhams ($394 million) from 1.43 billion dirhams a year earlier, the state-controlled lender said in an e-mailed statement on Wednesday. Mean estimate of six analysts was 1.45 billion dirhams, according to data compiled by Bloomberg. General, administration and other operating expenses climbed 17 percent, the bank said.
“We delivered this growth despite economic and market headwinds, including lower oil prices, margin compression and lower non-customer income in our global markets business,” Chief Executive Officer Alex Thursby said in the statement.
Profit at U.A.E. banks have been rising as provisions for loan losses decline in the second-biggest Arab economy. Emirates NBD PJSC reported a 26 percent jump in second-quarter profit earlier this month, while earnings at third-ranked First Gulf Bank PJSC advanced 8 percent.
National Bank of Abu Dhabi shares have fallen 16 percent this year compared with a 6.5 percent gain for Abu Dhabi’s benchmark stock index.