ID :
57929
Tue, 04/28/2009 - 15:16
Auther :
Shortlink :
https://oananews.org//node/57929
The shortlink copeid
NBAD operating profits exceed Dh1billion in Q1
Abu Dhabi, April 28, 2009 (WAM) - National Bank of Abu Dhabi (NBAD) earned a net attributable profit of Dh770 million in the first quarter of 2009, 57% up compared with the fourth quarter of 2008.
Compared with the March quarter 2008, net attributable profits rose by 9% based on the core profits of Dh710 million, after excluding the Dh165 million gain on the sale of land purchased for the purpose of our northern emirates regional office site but later exchanged for another. Annualised diluted earnings for the first quarter were Dh1.39 per share.
Chairman of NBAD HE Nasser Ahmed Khalifa Al Suwaidi said, "The Bank delivered good results in difficult trading conditions. Comprehensive measures have been put in place to protect future earnings through our collective provisions, tightening of credit criteria, effective cost efficiencies and supporting our relationships while assisting distressed customers to meet their obligations."
NBAD's total assets of Dh161 billion were 2% higher from Dh157 billion for the first quarter of 2008, but 2% lower than the previous quarter from Dh165 billion, reflecting global economic conditions. Loans and advances to customers showed an increase of 25% over the first quarter of 2008 from Dh93 billion to Dh116 billion as at 31 March 2009 and a 4% increase from Dh112 billion as at 31 December 2008.
Impaired assets during the first quarter of 2009 increased by Dh175 million from Dh1, 072 million as at 31 December 2008 to Dh1, 247 million, on a portfolio of Dh116 billion. This represents 1.1% of the loan portfolio.
Net impairment charges for the quarter were Dh214 million of which collective provisions were Dh152 million, specific provisions were Dh85 million, mitigated by recoveries of Dh23 million.
Provisions increased by 13% from Dh1, 550 million to Dh1, 750 million compared with the December quarter 2008.
Customer deposits declined by 5% to Dh98 billion from Dh103 billion compared with the previous quarter of 2008. The Abu Dhabi Government's deposit of Dh4 billion was transferred to equity during the quarter, reducing deposits but increasing the capital base.
Al Suwaidi added that the Group's return on equity was 21.5% for the quarter under review, "below our medium-term target of 25%, but consistent with our 2009 target of 20%. The cost to income ratio of 30% remains below our 35% medium term expected level."
The Bank's equity increased to Dh18 billion after the Dh 4 billion Government of Abu Dhabi Tier-I injection and the distribution of Dh 593 million in cash dividends. The total capital resources of the Bank now exceeds Dh21 billion and takes total capital adequacy ratio to 18% positioning the bank among the best capitalised banks worldwide.
NBAD's operating income for the quarter reached Dh1, 438 million, up by 12% on the March 2008 quarter and 7% up on the December quarter of 2008. Operating expenses were well contained showing a 2% decrease from Dh 444 million in the fourth quarter 2008 to Dh 435 million in the first quarter, but 33% up from Dh328 million year-on-year.
The organic growth of NBAD will not be constrained by the uncertain market conditions as the bank has sufficient capital to fund its growth and commitments.
The restructuring of NBAD's business has been successfully completed and we are providing, for the first time this quarter the new segmental reporting for all the Bank's businesses and therefore no comparisons are made with previous quarters.
A satisfactory performance was achieved by the Bank's businesses which contributed operating profits of Dh1, 003 million, reflecting an improvement of 5% and 11% on the first and fourth quarters of 2008, respectively.
Domestic Banking earnings of Dh 206 million represents 21% of the top-line operating profits; Financial Market's performance of Dh 223 million contributed 22%; International Banking delivered Dh134 million, representing a 13% contribution; Corporate and Investment Banking was the strongest performer contributing 42% or Dh421 million. Contributions from Global Wealth and Islamic Banking were Dh4 million and Dh3 million, respectively and Head Office - which is managed as a business - contributed Dh12 million the combined contributions from Global Wealth, Islamic Banking and Head Office amounted to 2% of the top line operating profits.
Compared with the March quarter 2008, net attributable profits rose by 9% based on the core profits of Dh710 million, after excluding the Dh165 million gain on the sale of land purchased for the purpose of our northern emirates regional office site but later exchanged for another. Annualised diluted earnings for the first quarter were Dh1.39 per share.
Chairman of NBAD HE Nasser Ahmed Khalifa Al Suwaidi said, "The Bank delivered good results in difficult trading conditions. Comprehensive measures have been put in place to protect future earnings through our collective provisions, tightening of credit criteria, effective cost efficiencies and supporting our relationships while assisting distressed customers to meet their obligations."
NBAD's total assets of Dh161 billion were 2% higher from Dh157 billion for the first quarter of 2008, but 2% lower than the previous quarter from Dh165 billion, reflecting global economic conditions. Loans and advances to customers showed an increase of 25% over the first quarter of 2008 from Dh93 billion to Dh116 billion as at 31 March 2009 and a 4% increase from Dh112 billion as at 31 December 2008.
Impaired assets during the first quarter of 2009 increased by Dh175 million from Dh1, 072 million as at 31 December 2008 to Dh1, 247 million, on a portfolio of Dh116 billion. This represents 1.1% of the loan portfolio.
Net impairment charges for the quarter were Dh214 million of which collective provisions were Dh152 million, specific provisions were Dh85 million, mitigated by recoveries of Dh23 million.
Provisions increased by 13% from Dh1, 550 million to Dh1, 750 million compared with the December quarter 2008.
Customer deposits declined by 5% to Dh98 billion from Dh103 billion compared with the previous quarter of 2008. The Abu Dhabi Government's deposit of Dh4 billion was transferred to equity during the quarter, reducing deposits but increasing the capital base.
Al Suwaidi added that the Group's return on equity was 21.5% for the quarter under review, "below our medium-term target of 25%, but consistent with our 2009 target of 20%. The cost to income ratio of 30% remains below our 35% medium term expected level."
The Bank's equity increased to Dh18 billion after the Dh 4 billion Government of Abu Dhabi Tier-I injection and the distribution of Dh 593 million in cash dividends. The total capital resources of the Bank now exceeds Dh21 billion and takes total capital adequacy ratio to 18% positioning the bank among the best capitalised banks worldwide.
NBAD's operating income for the quarter reached Dh1, 438 million, up by 12% on the March 2008 quarter and 7% up on the December quarter of 2008. Operating expenses were well contained showing a 2% decrease from Dh 444 million in the fourth quarter 2008 to Dh 435 million in the first quarter, but 33% up from Dh328 million year-on-year.
The organic growth of NBAD will not be constrained by the uncertain market conditions as the bank has sufficient capital to fund its growth and commitments.
The restructuring of NBAD's business has been successfully completed and we are providing, for the first time this quarter the new segmental reporting for all the Bank's businesses and therefore no comparisons are made with previous quarters.
A satisfactory performance was achieved by the Bank's businesses which contributed operating profits of Dh1, 003 million, reflecting an improvement of 5% and 11% on the first and fourth quarters of 2008, respectively.
Domestic Banking earnings of Dh 206 million represents 21% of the top-line operating profits; Financial Market's performance of Dh 223 million contributed 22%; International Banking delivered Dh134 million, representing a 13% contribution; Corporate and Investment Banking was the strongest performer contributing 42% or Dh421 million. Contributions from Global Wealth and Islamic Banking were Dh4 million and Dh3 million, respectively and Head Office - which is managed as a business - contributed Dh12 million the combined contributions from Global Wealth, Islamic Banking and Head Office amounted to 2% of the top line operating profits.
