ID :
119172
Wed, 04/28/2010 - 14:09
Auther :
Shortlink :
https://oananews.org//node/119172
The shortlink copeid
NBAD records strong net profits in Q1
Abu Dhabi, April 28, 2010 (WAM)- National Bank of Abu Dhabi (NBAD) earned net profits of Dh1,031 million in the first quarter of 2010, compared with Dh429 million the December quarter of 2009. This is the highest net profit ever recorded by the bank in a single quarter. Compared with the March quarter 2009, net profits rose by 34% from Dh770 million. Annualised diluted earnings for the first quarter were Dh1.67 per share.
Net impairment charges for March 2010 were Dh225 million of which collective provisions were AED 55 million, specific provisions and write offs were Dh208 million, offset by recoveries of Dh38 million.
Impaired loans, during the first quarter of 2010, were Dh1,778 million on a portfolio of Dh134 billion, representing an NPL ratio of 1.30%.
NBAD's asset quality remains high. Collective provision of Dh1,660 million represents 1.25% of credit risk weighted assets. NPLs are 161% covered with specific provision cover of 67% up from 62% at the year-end.
The Chairman of NBAD Nasser Alsowaidi said, "In the current UAE economic environment where confidence is growing but recovery is still subdued, the group continues to focus on building revenues and strengthening customer relationships. Our organic growth and investments in staff, systems and infrastructure will ensure long-term sustainability."
Total revenue of Dh1,772 million from the bank's diversified income sources increased during the first quarter of 2010, growing by 23% and 11% compared with March 2009 and December 2009, respectively. Net interest income improved 13% when compared with March 2009 and other income increased by 56% to Dh533 million, due to investment and revaluation gains of Dh97 million versus a loss of Dh55 million for the same period.
Net interest margins were maintained around 2.5%.
Operating expenses increased by 14% to Dh494 million compared with the corresponding period The bank continued its "build rather than buy" strategy, investing in its people, systems, brand and products. The bank opened a new branch in Amman, Jordan during the quarter.
The cost to income ratio of 27.9% remains well below our 35% medium-term expected level.
The Group's return on shareholders' funds was 24.3% for the quarter under review, consistent with NBAD's medium-term strategic objective of maintaining an average return of 25% over the full economic cycle.
NBAD reported total assets at Dh201 billion, 2.0% higher compared with Dh197 billion for 31 December 2009.
Loans and advances to customers showed a 15% increase over March 2009 but only a marginal increase of 1.0% from Dh132.3 billion as at December 2009 to Dh133.6 billion as at March 2010. Customer deposits were Dh114.7 billion, 17% higher than March 2009 but 5.4% lower than the fourth quarter 2009, due primarily to the Dh5.6 billion Ministry of Finance deposits that were transferred to Tier II capital during the first quarter of 2010.
The Group's liquidity position remains comfortable and the availability of medium-term funding improved gradually during the first quarter. NBAD successfully launched a US$750 million five-year bond under its US$5 billion EMTN programme, paying a coupon of 4.25%. The order book was five times oversubscribed with a diversified international investor distribution. This was the first international public benchmark transaction by a GCC financial institution in 2010.
NBAD's capital position remains solid with capital resources (including Tier II notes) around AED 30 billion, representing almost 15% of total assets. The classical leverage ratio was 6.7 times at quarter end March 2010.
At 31 March 2010, capital resources were Dh29.9 billion, 28.3% up on Dh23.3 billion at the end of December 2009. Total capital adequacy ratio on Basel II principles rose to 21.4% from 17.4% on December 2009 and Tier II capital was up from Dh2.8 billion to Dh8.4 billion, having transferred Ministry of Finance deposits to subordinated capital.
Tier I capital stood at Dh21.4 billion, including the Dh4 billion Government of Abu Dhabi Tier-I capital notes.
All NBAD's businesses performed well, contributing operating profits of Dh1,278 million and reflecting an improvement of 27.4% and 19.5% on the March and December quarters of 2009, respectively.
Domestic Banking earnings of Dh273 million represented 21.4% of the top-line operating profits of Dh1,278 million; Financial Market's performance of Dh245 million contributed 19.2%; International Banking delivered Dh136 million, representing a 10.6% contribution; Corporate and Investment Banking contributed 49.6% or Dh634 million. Contributions from Global Wealth and Islamic Banking totalled Dh21 million or 1.6%.
NBAD's long-term ratings were affirmed by the credit rating agencies, maintaining our ranking as one of the strongest combined ratings of the financial institutions in the MENA region with Moody's Aa3, Standard '&' Poor's A+ and Fitch AA-. Commenting on the results Michael Tomalin, Group Chief Executive, said, "NBAD's businesses performed well and showed their resilience. With capital resources of some Dh30 billion the bank is well positioned to take advantage of the first signs of global recovery."
Net impairment charges for March 2010 were Dh225 million of which collective provisions were AED 55 million, specific provisions and write offs were Dh208 million, offset by recoveries of Dh38 million.
Impaired loans, during the first quarter of 2010, were Dh1,778 million on a portfolio of Dh134 billion, representing an NPL ratio of 1.30%.
NBAD's asset quality remains high. Collective provision of Dh1,660 million represents 1.25% of credit risk weighted assets. NPLs are 161% covered with specific provision cover of 67% up from 62% at the year-end.
The Chairman of NBAD Nasser Alsowaidi said, "In the current UAE economic environment where confidence is growing but recovery is still subdued, the group continues to focus on building revenues and strengthening customer relationships. Our organic growth and investments in staff, systems and infrastructure will ensure long-term sustainability."
Total revenue of Dh1,772 million from the bank's diversified income sources increased during the first quarter of 2010, growing by 23% and 11% compared with March 2009 and December 2009, respectively. Net interest income improved 13% when compared with March 2009 and other income increased by 56% to Dh533 million, due to investment and revaluation gains of Dh97 million versus a loss of Dh55 million for the same period.
Net interest margins were maintained around 2.5%.
Operating expenses increased by 14% to Dh494 million compared with the corresponding period The bank continued its "build rather than buy" strategy, investing in its people, systems, brand and products. The bank opened a new branch in Amman, Jordan during the quarter.
The cost to income ratio of 27.9% remains well below our 35% medium-term expected level.
The Group's return on shareholders' funds was 24.3% for the quarter under review, consistent with NBAD's medium-term strategic objective of maintaining an average return of 25% over the full economic cycle.
NBAD reported total assets at Dh201 billion, 2.0% higher compared with Dh197 billion for 31 December 2009.
Loans and advances to customers showed a 15% increase over March 2009 but only a marginal increase of 1.0% from Dh132.3 billion as at December 2009 to Dh133.6 billion as at March 2010. Customer deposits were Dh114.7 billion, 17% higher than March 2009 but 5.4% lower than the fourth quarter 2009, due primarily to the Dh5.6 billion Ministry of Finance deposits that were transferred to Tier II capital during the first quarter of 2010.
The Group's liquidity position remains comfortable and the availability of medium-term funding improved gradually during the first quarter. NBAD successfully launched a US$750 million five-year bond under its US$5 billion EMTN programme, paying a coupon of 4.25%. The order book was five times oversubscribed with a diversified international investor distribution. This was the first international public benchmark transaction by a GCC financial institution in 2010.
NBAD's capital position remains solid with capital resources (including Tier II notes) around AED 30 billion, representing almost 15% of total assets. The classical leverage ratio was 6.7 times at quarter end March 2010.
At 31 March 2010, capital resources were Dh29.9 billion, 28.3% up on Dh23.3 billion at the end of December 2009. Total capital adequacy ratio on Basel II principles rose to 21.4% from 17.4% on December 2009 and Tier II capital was up from Dh2.8 billion to Dh8.4 billion, having transferred Ministry of Finance deposits to subordinated capital.
Tier I capital stood at Dh21.4 billion, including the Dh4 billion Government of Abu Dhabi Tier-I capital notes.
All NBAD's businesses performed well, contributing operating profits of Dh1,278 million and reflecting an improvement of 27.4% and 19.5% on the March and December quarters of 2009, respectively.
Domestic Banking earnings of Dh273 million represented 21.4% of the top-line operating profits of Dh1,278 million; Financial Market's performance of Dh245 million contributed 19.2%; International Banking delivered Dh136 million, representing a 10.6% contribution; Corporate and Investment Banking contributed 49.6% or Dh634 million. Contributions from Global Wealth and Islamic Banking totalled Dh21 million or 1.6%.
NBAD's long-term ratings were affirmed by the credit rating agencies, maintaining our ranking as one of the strongest combined ratings of the financial institutions in the MENA region with Moody's Aa3, Standard '&' Poor's A+ and Fitch AA-. Commenting on the results Michael Tomalin, Group Chief Executive, said, "NBAD's businesses performed well and showed their resilience. With capital resources of some Dh30 billion the bank is well positioned to take advantage of the first signs of global recovery."
