Forex puts Abu Dhabi in front
Source: Bloomberg News |
October 24, 2011, Monday
|
Print Edition
Print Edition
NATIONAL Bank of Abu Dhabi, the United Arab Emirates' second-biggest bank by assets, posted a 12 percent increase in third-quarter profit as gains from foreign exchange transactions offset investment losses.
Net income rose to 1.03 billion dirhams (US$280 million), or 0.31 dirhams a share, from 919.8 million dirhams, or 0.27, the government-controlled bank said yesterday.
Operating income grew 10 percent to 2 billion dirhams.
The results were "driven by higher than expected fees and commissions, foreign exchange gains and lower than expected additions to loan-loss reserves, which more than offset investment losses," according to Jaap Meijer, a Dubai-based analyst at HC Securities.
The bank is well positioned to benefit from Abu Dhabi's 2030 plan to diversify its economy, he said.
UAE banks are recovering from the credit crisis, which slowed lending, hurt investment banking and led to rising loan defaults.
The UAE economy, the Arab world's second-biggest after Saudi Arabia, will expand 4 percent this year compared with 3 percent in 2010, according to Standard Chartered.
National Bank of Abu Dhabi Chief Executive Michael Tomalin said: "In turbulent and difficult global markets, the bank has produced another solid result."
Net gains from foreign exchange-related transactions more than tripled to 206.6 million dirhams, the bank said. The bank lost 27.8 million dirhams on investments over the quarter, compared with a 47.7 million-dirham gain a year ago.
Net income rose to 1.03 billion dirhams (US$280 million), or 0.31 dirhams a share, from 919.8 million dirhams, or 0.27, the government-controlled bank said yesterday.
Operating income grew 10 percent to 2 billion dirhams.
The results were "driven by higher than expected fees and commissions, foreign exchange gains and lower than expected additions to loan-loss reserves, which more than offset investment losses," according to Jaap Meijer, a Dubai-based analyst at HC Securities.
The bank is well positioned to benefit from Abu Dhabi's 2030 plan to diversify its economy, he said.
UAE banks are recovering from the credit crisis, which slowed lending, hurt investment banking and led to rising loan defaults.
The UAE economy, the Arab world's second-biggest after Saudi Arabia, will expand 4 percent this year compared with 3 percent in 2010, according to Standard Chartered.
National Bank of Abu Dhabi Chief Executive Michael Tomalin said: "In turbulent and difficult global markets, the bank has produced another solid result."
Net gains from foreign exchange-related transactions more than tripled to 206.6 million dirhams, the bank said. The bank lost 27.8 million dirhams on investments over the quarter, compared with a 47.7 million-dirham gain a year ago.
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