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Wednesday, 27 July 2016

NBAD and FGB results show pace of growth in bank sector has slowed | The National

NBAD and FGB results show pace of growth in bank sector has slowed | The National:

"National Bank of Abu Dhabi (NBAD) and FGB said in their first earnings releases ahead of a planned merger that second- quarter profitability had waned as interest from lending slowed amid weakening economic growth and rising debt defaults.

Net income at NBAD slipped 4.8 per cent in the three months ended June 30 to Dh1.38 billion versus Dh1.44bn in the same period last year. Net interest income fell 0.2 per cent to Dh1.8bn versus Dh1.84bn as net impairment charges rose 79 per cent to Dh298 million.


Meanwhile, FGB said net income during the second quarter fell 10 per cent year-on-year, also weighed down by money set aside to cover bad debt and a drop in net interest income. Profit fell to Dh1.3bn from Dh1.45bn in the same period last year. Provisions rose 54 per cent to Dh398m compared to Dh258m a year earlier. Net interest and Islamic financing income decreased 3 per cent year-on-year to Dh1.56bn versus Dh1.6bn."



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