Dubai – Mubasher: The National Bank of Abu Dhabi (NBAD) reported net profits of AED 5.296 billion for the full-year 2016, up 1.2% year-over-year, according to a bourse filing.
Profits came on the back of strong underlying performance but were “partially offset by several macro headwinds, including volatility in financial and currency markets driven by political and economic uncertainties,” NBAD added.
Operating profits, which are profits before impairment and taxes, increased 5% in 2016 after non-interest income grew in line with the Bank’s strategy. Moreover, “expenses continued to be tightly managed throughout the year,” the statement said.
Profits for the fourth quarter of 2016 stood at AED 1.329 billion, up 1% quarter-on-quarter and 28% year-on-year.
The year-on-year results were driven by higher revenues, lower expenses and lower impairment charges, the bank noted.
NBAD succeeded in maintaining its prudent approach to risk management as challenging market conditions persisted in the UAE.
Net impairment charges increased 26% to AED 1.191 billion in 2016 compared with figures from the previous year, which was in line with guidance provided by management at the beginning of the year.
“Liquidity remained strong with Loans-to-Deposits ratio of 79%, and capital ratios remained robust with a Tier-1 ratio of 16.9%,” according to the statement.
