Profits slide for National Bank of Abu Dhabi

25 April 2007

National Bank of Abu Dhabi (NBAD) has posted a decline in profits for the fourth consecutive quarter.

First-quarter profits for the United Arab Emirates' largest lender stood at $163.3 million - a 4.7 per cent decline compared with the same period last year.

Costs accrued from expansion and development of new banking divisions is thought to have been the chief driving factor behind the decline.

Michael Tomalin, NBAD's chief executive, told Reuters that costs were up as a result of "investment in the brand, in new technology, and the bank's new businesses, such as Islamic and private banking, and in premises."

As well as expanding its Islamic banking interests with 20 new branches planned to be opened in the United Arab Emirates, NBAD is also to seeking to capitalise on overseas markets with a new shariah-compliant banking unit to be based in Switzerland, set to open as of June 1st.

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