Abu Dhabi- 28, January, 2008: National Bank of Abu Dhabi (NBAD)National Bank of Abu Dhabi (NBAD) Board of Directors met TODAY and reported net attributable profits of AED 2,505 million or AED 1.57 per share, 19% up on 2006.

Operating income reached AED 3,665 billion, 24% up on 2006. Net Interest income, which represented 66% of operating income rose 19%; fee and other operating income rose 35% reflecting our focus on fee generating businesses. Operating costs increased within plan to AED 1,054 million up 51% on 2006, reflecting the increased investment in our network, brand, products, people, systems and society. The cost income ratio of 28.8% is low by international standards, and lower than the 35% average cost income ratio the bank expects over the medium term.

The 4^th quarter profits were AED 744 million, up 59% on the 4^th quarter of 2006. Businesses performed well across the board in the 4^th quarter with operating income increasing by AED 1.1 billion and operating expenses increasing by AED 0.3 billion.

Total assets reached AED140 billion at the end of 2007, up 38% from year end 2006 with customer deposits up 16% to AED 82 Billion and loans up 39% to AED 80 billion. Total capital resources reached AED 13.7 billion, up 20%, including AED 2.5 billion of subordinated convertible debt and without any new shareholder contributions. The ROE at 26.3% in 2007 is ahead of the 25% average target set in the bank's 5 year plan. Capital adequacy ratios remain comfortable.

Net new provisions for bad and doubtful debts were AED 42 million which reflects the strong quality of our assets. Provisions were not required as a result of the US sub prime crisis as the Bank had no direct or indirect exposure to CDOs, SIVs or the US sub prime mortgage market. Impaired loans are 106% covered by specific and collective impairment provisions. The actual level of impaired loans has fallen from AED 949M at the end of 2006 to AED 859M at year end 2007. The tax provision charge was AED 64 million, in line with growing overseas earnings.

Net profits from the domestic banking business increased 19% to AED 1,454 million in 2007 which represented 58% of the group profit. NBADNBAD continued to grow its domestic operations and during the year, 9 more branches were opened to reach 74 branches spread over all 7 emirates. An SME business was added to the existing retail, corporate, elite and leasing business.

The investment banking businesses contributions to the group profits were AED 556 million of which AED 283 million, or 11.3% of group profit, came from the Financial Markets Group, and AED 82 million, or 3.3%, from the Corporate Finance business, which in 2 years moved NBADNBAD from not being ranked in the top 30, to number one in the Bloomberg league tables for MENA transactions. Asset Management contributed AED 72 million or 2.9% and our brokerage business, Abu Dhabi Financial ServicesAbu Dhabi Financial Services, AED 119 million or 4.7%. Active equity markets affected positively the asset management and brokerage businesses although performance remains below historic levels.

Profits from international banking business reached AED 354 million, representing 14% of the group profit and 7% over 2006. Our International banking business continues to do well and is expanding fast. During 2007 we opened 7 new branches in Egypt and Oman to be followed by a branch in Bahrain in the 1Q of 2008. We also have plans to open in Libya, Jordan and Hong Kong to increase our international reach. Our licence to open in Qatar is still pending.

Profits from the brand new private banking business were AED 19 million. We offer full private banking services through our Geneva subsidiary which started in June 2007, aided by local private teams in UAE and in locations where we operate.

The remaining profit is accounted by the head office which is run as a business, providing services to the front line businesses and employing the Bank's capital.

NBADNBAD has one of the highest credit ratings in the region comparable with many medium sized European banks.

Commenting on the results, the Chief Executive of NBADNBAD, Michael H Tomalin, said: "These are solid results with a compound average growth rate of 30% since 1999. The Bank has progressed across a broad front investing in its franchise, its people and its systems and we remain well placed to take advantage of the huge growth opportunities in Abu Dhabi and the region, and play a significant part in the economic development of the UAE. We are a responsible corporate entity providing financial support to the communities where we live and work.

Recovering local equity markets helped our results this year and our brokerage and asset management businesses remain well positioned to take advantage of the improving regional equity markets. The return on equity of 26.3% is one of the best in the industry, both locally and internationally, and in line with our 25% medium term objective." Michael Tomalin added.

Looking to the future, Tomalin said, "In line with our strategy, we expect positive growth in 2008. Our fully owned Islamic and real estate subsidiaries will be operational in the 1^st quarter of 2008 and we plan to continue to invest more in the business. Although we have done well, there remains a great opportunity to grow much larger still."

The directors recommended a cash dividend of Fils 40 (40%) per share and a stock dividend of 20%.

-Ends-

About NBADNBAD
The National Bank of Abu Dhabi (NBAD)National Bank of Abu Dhabi (NBAD), The Number One Bank in the UAE, was incorporated in 1968. NBADNBAD has a network of 74 branches in the UAE in addition to Cash offices that are spread out at remote locations to provide banking services to customers stationed at offshore oil operations and in desert locations as well as other government organizations. NBADNBAD also has three Shift offices inside the security areas of the Abu Dhabi International Airport providing currency & traveler's cheques exchange services.

The branch network is widened further with 187 ATMs through which customers perform a variety of transactions.

Besides brick & mortar branches, NBADNBAD provides 24 hour internet banking accessibility through NbadOnline and NbadDirect, as well as account access and personalized customer support through the 24-hour Call Centre.

NBADNBAD's overseas network stretches from Oman, Kuwait, and Bahrain in the G.C.C., Egypt and Sudan in Africa, London, Paris, and Geneva in Europe to Washington D.C. in the U.S.A.

The bank provides its customer with a wide variety of financial services targeted at all segments of the retail and corporate market in addition to Fund Management, Brokerage, Leasing, Property Management businesses and Private Banking.

NBADNBAD is rated senior long term/short term A+/A-1 by Standard and Poor's, Aa3/P1 by Moodys and AA-/F1+ by Fitch giving one of the strongest combined rating of any Middle Eastern financial institution.

NBADNBAD is an award winning leader in the UAE and GCC financial services industry. Awards won by the bank include 'Best Bank in UAE' from Euromoney and Banker publications, 'Human Resources Development Award' from the Emirates Institute for Banking & Financial Studies, the 'Middle East e-Banking Country Award', the 'Outstanding use of IT in Financial Services Award, and excellence award for 'Best use of Technology' from Banker Middle East.

For Media enquires, please contact:
Ehab Khairi
Media & PR Manager
National Bank of Abu Dhabi
Tel: +97126111190
Mob: + 971508126799
Email: ehab.hassan@nbad.ae
Web: www.nbad.ae

© Press Release 2008 from National Bank of Abu Dhabi

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