NBAD profit drops 6% in 2015

National Bank of Abu Dhabi, the UAE’s largest lender by assets, reported a 6 per cent decline in net profit for 2015 to Dhs 5.232bn due to tumbling fourth quarter results.

The bank’s Q4 net profit declined 25 per cent year-on-year and 22 per cent sequentially to Dhs 1.036bn due to challenging market and liquidity conditions.

The banks also said it had set aside a further Dhs 219m in net impairment charges for future contingencies.

“The operating environment in 2015 was challenging, both in the UAE and around the world. However, our robust capital position and ability to access liquidity from a range of sources has enabled us to continue providing the highest quality products and banking services to our customers domestically and internationally, without compromising our conservative risk profile,” said chairman Nasser Alsowaidi.

NBAD said its expenses increased 10 per cent year-on-year in line with expectations due to investments in talent, operations and infrastructure. Its return on equity also missed a medium-term target of 15 per cent, at 12.9 per cent.

However, the lender did see revenue for the year increase 1.4 per cent to Dhs 10.55bn from Dhs 10.41bn in 2014.

Chief executive Alex Thursby said NBAD was on solid footing for the year ahead and had strong liquidity, a high-quality loan book and limited exposure.

Earlier today, Dubai-based lender Mashreq reported a flat net profit due to tough market conditions in Q3 and Q4.