NBAD Second-Quarter Profit Climbs 16% as U.A.E. Lending Picks Up
National Bank of Abu Dhabi PJSC reported a 16 percent increase in second-quarter profit as the lender benefited from a recovery in the United Arab Emirates.
Net income rose to 1.21 billion dirhams ($330 million) from 1.05 billion dirhams a year earlier, the bank said in a statement. The mean estimate of six analysts was for a profit of 1.27 billion dirhams, according to a data compiled by Bloomberg.
Banks in the U.A.E. are recovering from a real-estate crash in Abu Dhabi and Dubai after the 2008 global credit crisis triggered an increase in debt defaults. NBAD, which hired Alex Thursby from Australia & New Zealand Banking Group Ltd. (ANZ) as the chief executive officer, reported results after Emirates NBD PJSC, (EMIRATES) Dubai’s biggest lender, posted a 50 percent jump in profit. Thursby started at the bank this month.
“During my first few weeks at NBAD, I have focused my energies on formulating our strategic vision for the next five years,” Thursby said in the statement. “Our results for the first half of 2013 are largely positive, and I look forward to continuing the strong growth trajectory.”
Second-quarter net interest income grew to 1.59 billion dirhams from 1.46 billion dirhams a year earlier, while fee and commission income rose to 476 million dirhams from 386 million dirhams. Impairment charges increased to 301 million dirhams from 292 million dirhams.
NBAD has set it sights on global expansion as limited populations in the Gulf Cooperation Council constrain banking growth. The Abu Dhabi-based lender plans to raise 1 billion euros ($1.3 billion) from European investors through its French unit, while it has also raised cash in currencies including the Mexican peso, Malaysian ringgit and Australian dollars.
The U.A.E., the second-largest Arab economy, has the biggest banking market in the six-nation GCC, which also includes Saudi Arabia. Annual profit at NBAD may climb 9 percent to 4.73 billion dirhams, according to the average estimate of 11 analysts compiled by Bloomberg.
NBAD’s shares have risen 42 percent this year compared with 48 percent for the benchmark ADX General Index.
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