National Bank of Abu Dhabi’s second quarter profit up by 16% - IFN

National Bank of Abu Dhabi’s second quarter profit up by 16%

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UAE: As the UAE’s real estate market sees gradual recovery in average property prices in Abu Dhabi and Dubai, as well as an improvement in liquidity in the banking system, the National Bank of Abu Dhabi (NBAD) has recorded an increase of 16% in second quarter profits. The bank’s net income rose to AED1.21 billion (US$329.34 million) from AED1.05 billion (US$285.79 million) in the same period last year, while its net income from Islamic financing contracts as at the 30th June stood at AED149.09 million (US$40.58 million) and its net interest and Islamic financing income grew by 7.5% from the corresponding period last year to AED3.2 billion (US$870.99 million). NBAD also reported a 21.8% rise in operating profits to AED3.3 billion (US$898.21 million) from the first half of 2012, with a 3% growth in its Islamic banking business. With regards to its Egyptian operations, the bank, which is rated ‘Aa3’ by Moody’s, said that it will continue to closely monitor the situation in the republic, and does not anticipate any material impact to its overall business. Overall growth in the UAE is expected to dampen this year, mainly due to slower growth in hydrocarbon production; however analysts at NBAD believe that this will be mitigated by increased non-oil activity in the region. Net loan to deposit ratios in the UAE is currently at its lowest levels since the last few years, contributing to improved liquidity, while lending growth, although so far modest, is seen to be picking up.