NBAD sees loan growth despite rising NPLs
On Wednesday, CEO said the UAE’s largest bank by market value National Bank of Abu Dhabi expects non-performing loans to spike this year but sees its lending surpassing the market growth rate. Sees profit growth depending on the level of provisions the bank expects 10 percent revenue growth in 2011, Michael Tomalin said. National Bank of Abu Dhabi is majority-owned by the Abu Dhabi government.
A second-quarter net profit of 1.03 billion dirhams up 2.5 percent over the same period last year and operating income was up 10 percent year on year, NBAD reported. Accounting for 2.65 percent of its loan book Non-performing loans increased to 4.17 billion dirhams. By the year end, the bank expects NPLs to rise to between 3 until 3.25 percent of the loan book, Tomalin said. He said in an interview “We know the number of restructured, our balance sheet, and other loans.” He added “We feel it might rise to that level.”
Tomalin said NBAD will expand its cards, retail and small and medium enterprises (SMEa) businesses to supplement fee income from investment banking and boost top-line growth and, asset management and private banking. He said as the economy of Abu Dhabi picks up, the bank plans to boost lending.