UAE banks’ Q1 profits down 3.7%

The combined profits of national banks in the UAE fell by around 3.7 per cent in the first quarter of 2012 and the bulk of the drop was by Dubai-based Emirates NBD (ENBD), one of the largest banks in the Middle East. After suffering losses in previous years, government-controlled Abu Dhabi Commercial Bank (ADCB) emerged as the star performer in Q1, with its net earnings leaping by nearly 40 per cent. Balance sheets published in the Sharjah-based Arabic language daily Alkhaleej showed the combined net profits of the 18 listed national banks edged down to around Dh5.816 billion in the first quarter of 2012 from nearly Dh6.04 billion in the first quarter of 2011. ENBD’s profits dipped to around Dh641.1 million from Dh1.41 billion in the same period and the report said the plunge was a result of continued allocations for bad loan provisions. ADCB’s earnings soared to Dh800.2 million from Dh574.4 million while the performance of the remaining banks was mixed. The report showed all Abu Dhabi-based banks recorded profit growth while there was a decline in the income of those in Dubai and other emirates and a slight profit by Ajman Bank after a loss in the previous quarter. From around Dh927.3 million in the first quarter of 2011, the net profits of government-controlled National Bank of Abu Dhabi grew to Dh1.04 billion while those of First Gulf Bank, also based in Abu Dhabi, swelled to Dh935 million from Dh875.3 million. The profits of Abu Dhabi-based Union National Bank also grew to Dh471.1 million from Dh456.4 million and those of Abu Dhabi Islamic bank to Dh307.3 million from Dh303.2 million. Dubai Commercial Bank’s earnings slipped to Dh242.5 million from Dh263.2 million while those of Dubai Islamic Bank increased to around Dh245 million from Dh221.6 million in the same period. Ajman Bank reverted to profits of around Dh4.5 million after suffering from a loss of Dh8.4 million in the first quarter of 2011.