Text size:

  • Small
  • Normal
  • Large
NBAD's lending to customers rose 3.2 per cent to Dh164.6 billion last year. Christopher Pike / The National
Christopher Pike Staff Photographer
NBAD's lending to customers rose 3.2 per cent to Dh164.6 billion last year. Christopher Pike / The National

Investment gains help NBAD beat estimates

National Bank of Abu Dhabi reports sharply higher earnings off the back of investment gains on financial assets, as the capital's biggest bank gears up for global expansion.

National Bank of Abu Dhabi (NBAD) smashed earnings estimates with a sharp rise in net profits for the fourth quarter, buoyed by substantial gains on investments as financial markets rallied.

The capital’s biggest lender reported net income of Dh4.3 billion (US$15.79bn) for last year, an increase of 16.8 per cent compared with a year earlier.

The bank’s full-year income was boosted by a strong fourth quarter in which the bank generated profits of Dh1.1bn.
This represented a 54.8 per cent increase on the corresponding period a year earlier.

Analysts had expected profits of Dh913 million.

The year had presented numerous challenges but none had hindered revenue growth at NBAD, said Michael Tomalin, the bank’s chief executive.

“Our growth was a result of the success of our diversified business model, investment gains driven by favourable financial market conditions and successful hedging strategies,” he said.

“We also continued to expand our international presence by opening offices in China and Malaysia, and we have set a target of expanding internationally from 14 countries to 41 countries by 2022.”

The bank gave no details on the sale of a convertible bond that was due to be discussed at its board meeting yesterday.

The bank said it had recommended a cash dividend of 35 fils per share held and a distribution of one bonus share for every ten held.

Lending to customers had increased to Dh164.6bn, 3.2 per cent higher at the end of the year than a year earlier, which the bank said was a “slower than anticipated” level of growth.

Instead of generating increased lending, the bank reaped greater gains from its market investments, which rose to Dh537.2m from Dh93.5m during the previous year.

Deposits grew substantially faster than new loans to Dh190.3bn, an increase of 25.4 per cent during the year, which the bank attributed to inflows and outflows of government deposits during the fourth quarter.

Money set aside to cover the cost of bad debts fell by 10.8 per cent during the year to Dh1.3bn.

During the year, NBAD successfully challenged the Central Bank on a circular imposing limits on exposure to large government entities.

The lender declared that it would be in breach of the Central Bank’s limits when they came into effect at the end of September, but was able to negotiate a waiver before the regulations were postponed for further study.

NBAD said that it would seek approval at its annual general meeting for an increase to its existing bond programmes.

If all the measures were approved this would increase the bank’s dollar, yen and Malaysian ringgit bond programmes by a total of $4.37bn.

The bank is also seeking approval for the sale of a $500m convertible bond, debt which converts into equity at a predetermined date.

NBAD shares were unchanged at Dh11.10 in trading on the Abu Dhabi Securities Exchange before the release of earnings.


ghunter@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National