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* NBAD Q3 profit 1.32 bln dhs vs 1.33 bln dhs yr-ago
* NBAD Q3 impairments 287 mln dhs vs 171 mln dhs yr-ago
* NBAD sees low single digit profit/revenues for 2016 - CFO
(adds quotes from analysts' call, results details)
ABU DHABI, Oct 26 (Reuters) - National Bank of Abu Dhabi
NBAD.AD
(NBAD), the United Arab Emirates' largest lender by assets, posted flat third-quarter net profit on Wednesday, in line with analysts' forecasts, as the bank was hit by a rise in bad loans.
The lender was sticking to its forecast of low single-digit profit and revenue growth for 2016, group Chief Financial Officer James Burdett said in a conference call after the release of the earnings.
The results are in line with a generally lacklustre earnings season for banks in the United Arab Emirates, reflecting a trickier operating environment as a more-than-two-year collapse in oil prices feeds through into higher levels of bad loans and compressed net interest margins.
NBAD, which is currently in a merger process with rival First Gulf Bank
FGB.AD
, made a net profit of 1.32 billion dirhams ($359.4 million) in the three months ending Sept. 30, it said in statement. This compared with 1.33 billion dirhams in the same period a year earlier.
The results were broadly in line with the forecasts of three analysts polled by Reuters, who had on average estimated a net profit in the quarter of 1.38 billion dirhams.
The bank's impairments jumped 68 percent in the third quarter to 287 million dirhams compared with the same period a year ago.
Provisions for the bank's retail and small- and medium-sized enterprise units were higher during the quarter, acting group Chief Executive Abhijit Choudhury said during the call.
"The Bank's impairments are reflective of the ongoing challenging operating environment," NBAD said in the statement, adding that the results "continue to reflect NBAD's prudent provisioning approach".
The tough economic environment may continue to impact the lender with net profit and earnings forecast to be in low single digits for the rest of the year, Burdett said on the analysts call.
NBAD's loan book totalled 205.3 billion dirhams ending Sept. 2016, down 0.3 percent from 205.9 billion dirhams in Dec. 2015.
Customer deposits were 242.9 billion dirhams, versus 233.8 billion dirhams, up 3.9 percent during the same period.
Merging NBAD and FGB, as recommended by the boards of the two lenders in July, would create one of the largest banks by assets in the Middle East and Africa. The deal is expected to be completed in the first quarter of 2017. ($1 = 3.6726 UAE dirham)
(Reporting by Stanley Carvalho and Tom Arnold; Editing by David French) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
* NBAD Q3 impairments 287 mln dhs vs 171 mln dhs yr-ago
* NBAD sees low single digit profit/revenues for 2016 - CFO
(adds quotes from analysts' call, results details)
ABU DHABI, Oct 26 (Reuters) - National Bank of Abu Dhabi
The lender was sticking to its forecast of low single-digit profit and revenue growth for 2016, group Chief Financial Officer James Burdett said in a conference call after the release of the earnings.
The results are in line with a generally lacklustre earnings season for banks in the United Arab Emirates, reflecting a trickier operating environment as a more-than-two-year collapse in oil prices feeds through into higher levels of bad loans and compressed net interest margins.
NBAD, which is currently in a merger process with rival First Gulf Bank
The results were broadly in line with the forecasts of three analysts polled by Reuters, who had on average estimated a net profit in the quarter of 1.38 billion dirhams.
The bank's impairments jumped 68 percent in the third quarter to 287 million dirhams compared with the same period a year ago.
Provisions for the bank's retail and small- and medium-sized enterprise units were higher during the quarter, acting group Chief Executive Abhijit Choudhury said during the call.
"The Bank's impairments are reflective of the ongoing challenging operating environment," NBAD said in the statement, adding that the results "continue to reflect NBAD's prudent provisioning approach".
The tough economic environment may continue to impact the lender with net profit and earnings forecast to be in low single digits for the rest of the year, Burdett said on the analysts call.
NBAD's loan book totalled 205.3 billion dirhams ending Sept. 2016, down 0.3 percent from 205.9 billion dirhams in Dec. 2015.
Customer deposits were 242.9 billion dirhams, versus 233.8 billion dirhams, up 3.9 percent during the same period.
Merging NBAD and FGB, as recommended by the boards of the two lenders in July, would create one of the largest banks by assets in the Middle East and Africa. The deal is expected to be completed in the first quarter of 2017. ($1 = 3.6726 UAE dirham)
(Reporting by Stanley Carvalho and Tom Arnold; Editing by David French) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
