A rise in income coupled with decreasing costs enabled National Bank of Abu Dhabi (NBAD) to earn a Dh513 million net profit in 2000, up 65 per cent over the previous year and the highest profits ever earned by the bank. A 25 per cent cash dividend has been proposed, the bank said yesterday.

Assets grew to Dh36 billion, a 16 per cent rise over 1999. "The substantial increase in NBAD profit is attributable to the 25 per cent increase in total income against a modest increase of three per cent in expenses," the bank said.

Domestic profits rose 46 per cent and profits from international business rose 81 per cent with particular success in Egypt (where NBAD is one of the largest foreign banks), and in London and Washington. However, the investment banking business had a more difficult year as profits remained flat, reflecting weak and inactive local equity markets and a more difficult interest rate scenario.

"Nonetheless, NBAD remains at the cutting edge of innovation in UAE capital markets and has been the pioneer in the development of the dirham bond market." Despite the modest increase in expenditure, the bank continued to invest in new systems including an Internet channel for its customers, alongside its branch, telephone and card channels.

New branches and ATMs were opened during the year, extending coverage nationwide, the bank added.