NBAD’s earnings continue its positive trend
Diluted earnings per share were Dh1.35 per share compared with Dh1.37 in 2008
Abu Dhabi: National Bank of Abu Dhabi (NBAD) reported flat net profits of Dh3,020 million for the financial year ending 2009 (Dh3,019 million in 2008).
Diluted earnings per share were Dh1.35 per share compared with Dh1.37 in 2008.
This profit was achieved after taking substantial collective provisions and despite the past year’s credit and liquidity challenges.
Net impairment charges for the full year were Dh1, 408 million of which collective provisions were Dh756 million, specific provisions and write-off charges were Dh797 million, mitigated by recoveries of Dh145 million.
Although no properties have been revalued from original cost – and being a 40 year old bank there are many legacy buildings – we have taken an impairment of Dh37 million in respect of recently acquired land for our own use.
Collective provisions of Dh1, 604 million represents 1.25 per cent of credit risk weighted assets.
Impaired assets increased by Dh615 million for the full year totaling Dh1, 687 million. The non-performing loans ratio stood at 1.25 per cent, specific and general provisions taken together cover 158 per cent of impaired assets.
Risk management strategies are in place to manage risk and contain losses. Successful measures include the improvement in collections, while close monitoring of arrears and customised credit programmes to assist customers are also proving effective.
Top line fourth quarter operating profits were Dh1, 070 million, up 18.3 per cent on the Dh904 million earned in the fourth quarter of 2008. Net profits in the fourth quarter were Dh429 million, 13 per cent lower than the Dh492 million earned in the fourth quarter of 2008. This profit is after taking Dh623 million of provisions of which Dh316 million were collective provisions.
