NBAD earnings up 16% as new chief plans strategic shift

NBAD's customer deposits grew 6.6 per cent in the second quarter to Dh219 billion. Christopher Pike / The National

National Bank of Abu Dhabi reported a sharp rise in profits yesterday as the lender posted its first results under its new chief executive Alex Thursby.

The UAE's biggest bank reported net profits for the second quarter of Dh1.21 billion, an increase of 15.7 per cent compared with the corresponding period a year earlier.

But that still missed analysts' estimates as pronounced market volatility hit its income from investments.

The bank said that global growth this year had been weaker than anticipated.

Analysts had expected profits of Dh1.29bn.

Mr Thursby, who took over from Michael Tomalin as the bank's chief executive at the start of this month, said the bank would embark upon a change of strategy within the coming months in an effort to boost profits.

"During my first few weeks at NBAD, I have focused my energies on formulating our strategic vision for the next five years and ensuring that we are absolutely focused on being core to our chosen clients," he said.

"When we become truly core to our clients, we will deliver better results for our shareholders and all of our stakeholders."

The lender's profits were dragged down by mark-to-market losses on investments totalling Dh24.2 million, compared with profits of Dh47.1m on its investment book during the same quarter last year.

The bank increased lending during the quarter at the fastest rate in two years, growing its net loans and advances by 6.8 per cent to Dh173bn.

Customer deposits grew 6.6 per cent during the same period to Dh219bn.

The bank added that it was closely monitoring the unrest in Egypt, where NBAD also operates, saying it did not expect any material impact to its overall business.

NBAD's shares are up 42 per cent this year.