National Bank of Abu Dhabi and bu Dhabi Commercial Bank have reported their third quarter results, beating Dubai rivals but detailing mixed fortunes for both institutions.
Abu Dhabi banks beating Dubai performance
National Bank of Abu Dhabi, the UAE's second biggest bank by assets, grew slowly during the last three months, disappointing expectations of stronger growth, while smaller rival Abu Dhabi Commercial Bank raced ahead.
NBAD announced a 0.6 per cent increase in net profits for the third quarter to Dh920m (US$250.5m), according to the company's quarterly earnings report published today [Tuesday].
Meanwhile, ADCB, their nearest rival in Abu Dhabi by assets, recorded it had increased its net profits sevenfold to Dh325m ($88.4m).
However, Abu Dhabi's two biggest banks appear to show more signs of life than Dubai. Emirates NBD reported yesterday its net profits had contracted by 59.7 per cent in the last three months to Dh423m ($115.2m).
Jarmo Kotilaine, chief economist at NCB Capital, said that though Abu Dhabi's banks were recording profits, the outlook for the UAE was still mixed.
"The key issue at this point is credit picking up, and private sector credit in particular, because this is something that has been treading water for some time."