National Bank of Abu Dhabi (NBAD), a leading bank in the UAE, said its operating profits for the first half in 2009 reached Dh2.2 billion ($599.2 million), up 7.8 per cent when compared to the same period last year.

Announcing the bank's financial results on Tuesday, NBAD chairman Nasser Ahmed Khalifa AlSowaidi said the net profits, after collective and specific provisions for non performing assets, and overseas taxes, were Dh907 million in the second quarter, up 17.7 per cent when compared to Dh770 million reported in the first quarter.

According to AlSowaidi, the bank's half year net profits fell 10.6 per cent to Dh1.6 million over the first half of 2008.

'In the first half of 2008 total net provisions were Dh145 million; in the first half of 2009 net collective and specific provisions are Dh355 million higher at Dh500 million.'

The operating profits for the second quarter of 2009 surged to a record Dh1.2 billion.Annualised earnings per share were Dh1.49 down from Dh1.70 for the comparable period of 2008.

'Despite the prevailing uncertain global market conditions, NBAD achieved good financial results for the second quarter and first half, reflecting the resilience of the Group’s diversified business model and prudent risk policies,' remarked AlSowaidi.

'The global outlook remains uncertain, but the strong investment in infrastructural projects by the government, is expected to support the economic growth of Abu Dhabi and counter, to some extent, the slowdown in the economy,' he added.

The total assets increased 12.3 per cent and 9.4 per cent over the first quarter of 2009 and second quarter of 2008 respectively, to touch Dh181 billion.

NBAD achieved a return on equity of 22.8 per cent for the first half of 2009, which is in line with the Group's overall plan of 20 per cent for 2009 and medium term ROE of 25 per cent.

Customer deposits, including Dh5.6 billion received from ministry of Finance in the last quarter of 2008, showed a healthy improvement of 14.1 per cent quarter-on-quarter and an increase of 25.1 per cent to Dh112 billion compared with first half of 2008.

Loans and advances to customers surged by 16.7 per cent over the first half of 2008 to Dh124 billion and 7.2 per cent compared with the first quarter of 2009.

According to AlSowaidi, the group has $7.5 million exposure to the Al Gosaibi group and holds $3.4 million of a Saad group sukuk on a mark-to-market basis.

Cash and balances with Central Bank amounted to Dh14.7 billion, 1.8 per cent up on the first quarter of 2009, but 40 per cent down from Dh24.6 billion for the first half of 2008, due to excess speculation money in last year’s balances.

NBAD chief executive Michael Tomalin said, 'The global environment remains volatile and challenging but we are confident that our strong franchise and balance sheet will ensure that the Group will weather these turbulent conditions.'

'We remain cautious and maintain our strategies of risk mitigation and business focus to ensure sustainable growth for our stakeholders. We continue to build our capital resources and collective provision to put us in the best possible position for the future,' he added.-TradeArabia News Service