NBAD 1H net profits up 7.9% to Dh2.8 billion

Abu Dhabi (WAM): The National Bank of Abu Dhabi (NBAD) earned Dh 2.829 billion for the half ended 30 June 2014, up 7.9% over first half of 2013. "In 2Q 2014, net profits were AED 1.424 billion, up 1.3% sequentially and 17.5% year-over-year. Results for both periods reflect improvement in underlying fee income and continued expense discipline. Diluted EPS was AED 0.56 for 1H 2014, up 6.8%," NBAD said. The annualised return on average equity for 1H 2014 was 16.0%, down from 16.6% in 1H 2013. Nasser Alsowaidi, Chairman of NBAD said, "In the second quarter of 2014, NBAD continued to generate solid momentum across business lines. The Bank’s results reflect continued strength in underlying revenue and earnings growth. As we enter the second half of 2014, NBAD will continue to focus on generating long-term growth whilst maintaining its strong balance sheet and solid capital position." Alex Thursby, Group Chief Executive said, "Our results in the second quarter of 2014 provide further evidence that our strategy is working. We are seeing positive underlying trends across our businesses, particularly our fee generating businesses. I expect these trends to continue in the second half of the year and in the years to come. Every day, we are executing against our strategy and becoming more ‘core to our chosen customers’, generating significant wins and building substantial pipelines with clients in both the private and public sectors. At the same time, the strength of our balance sheet remains at the top of our priority list, and we are focused on maintaining strong liquidity and capital positions. "We are beginning to work as one team in major transactions and significant deals, we are establishing stronger government relations in areas such as cash management services, and we are in the process of expanding in the UK and Asia. I expect the improvements we are beginning to see will continue to drive long-term business momentum and increases in revenue and profitability going forward. As we enter the second half of the year, I am confident that we will continue to execute against our strategy and achieve sustainable growth over time," Thursby concluded. NBAD says U.A.E., which has the 2nd largest economy in the Arab world and 29th largest GDP in the world, recently became part of the MSCI Emerging Market Index in June 2014, and has continued to benefit from its safe haven status during periods of instability in the region. "The economy has shown signs of resilience amidst global and regional uncertainty and is beginning to generate returns from its diversification efforts. Last year, the non-oil sector constituted 61% of nominal GDP, with strength coming from real estate and transport/communication. Over time, the objective is to continue to increase the contribution from the non-oil sector to the overall U.A.E. economy. " In 2014, U.A.E.'s recovery will gain momentum through higher levels of investment, increasing population and a stable political environment. With Expo 2020 and projects like KIZAD (Khalifa Industrial Zone Abu Dhabi) underway, the non-oil sector is expected to drive the economic growth. 1H 2014 Highlights Net Profits were Dh 2.8 billion, up 7.9% y-o-y Revenues were Dh 5.1 billion, up 4.4% y-o-y Total Assets grew to Dh 348.5 billion, up 6.7% y-o-y Loans were Dh 181.7 billion, up 4.8% y-o-y Customer Deposits increased to Dh 237.4 billion, up 8.2% y-o-y Trade contingencies were Dh 95.1 billion, up 21.8% y-o-y Strong capital position with CAR at 16.2% and Tier-I ratio at 14.7% 2Q 2014 Highlights Net Profits were Dh 1.4 billion, up 1.3% sequentially (q-o-q) and 17.5% y-o-y Revenues were Dh 2.6 billion, up 2.8% q-o-q and 9.2% y-o-y Total Assets at Dh 348.5 billion, down 3.5% q-o-q Loans at Dh 181.7 billion, up 1.8% q-o-q Customer Deposits Dh 237.4 billion, up 1.0% q-o-q Trade contingencies Dh 95.1 billion, flat q-o-q. – Emirates News Agency, WAM