Dubai: Three leading Abu Dhabi banks led by National Bank of Abu Dhabi (NBAD) on Tuesday showed strong growth in profits supported by rising interest and non-interest incomes and consistently declining non-performing loans (NPLs).
All three institutions, NBAD, Abu Dhabi Commercial Bank (ADCB) and First Gulf Bank (FGB) reported significant balance sheet growth with consistent pick up in lending and deposits growth underlined by robust improvement in asset quality matrixes.
NBAD reported a net profit of Dh2.82billion, up 7.9 per cent for the first half of the year as its second quarter profit surged 17.5 per cent to Dh1.424 billion year on year. Bank’s total assets were up 6.7 per cent year-over-year. Net loans and advances increased 4.8 per cent year-over-year and 1.8 per cent sequentially.
NBAD’s net fees and commissions were up 26.8 per cent in the first half of 2014, driven by increases in trade finance, retail, brokerage and lending related fees.
“Our results in the second quarter of 2014 provide further evidence that our strategy is working. We are seeing positive underlying trends across our businesses, particularly our fee generating businesses,” said Alex Thursby, Group Chief Executive.
ADCB announced a 19 per cent increase in net profit to Dh2.16 billion in the first half of 2014 compared to the first half of 2013 and Dh1.05 billion net profits for the second quarter.
The bank’s balance sheet continued to strengthen with the total assets up by 8 per cent year to date and net impairment allowance charges reduced to Dh407 million in the first half 2014 and non NPL ratio and provision coverage ratios improved to 3.4 per cent and 129.2 per cent, respectively.
“Our focus on disciplined cost management combined with improved asset quality have contributed to our success in first half of 2014,” said Ala’a Eraiqat, member of the board and chief executive officer of ADCB.
FGB’s first half profits were up 21 per cent at Dh2.68 billion compared with the same period last year. Loan growth resumed in the second quarter of 2014 with loans and advances increasing 4 per cent to Dh128.2 billion.
“We are committed to enabling our clients to fulfill their financial goals and aspirations. Moreover, the bank’s continued expansion into new markets allows our customers to access valuable opportunities both locally and abroad,” said Andre Sayegh, CEO of FGB.
