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NBAD Reports AED 3.7 Billion Net Profits in 2011

Top line operating income up 10% to AED 7.9 Billion

Operating profits up 6.5% to AED 5.3 Billion

Net earnings steady despite substantial provisions

Assets top AED 250 Billion for first time

Abu Dhabi (January 31,2012)- - the National Bank of Abu Dhabi ( NBAD ) - the Safest Bank in the Middle East* - earned AED 3,708 million in net profits in the year ended 31 December 2011, compared with AED 3,683 million earned in the corresponding period of 2010,representing diluted EPS of AED 1.19 for 2011 compared with AED 1.16 for 2010.

Fourth quarter profit for 2011 was recorded at AED 724 million compared with AED 732 million earned in the fourth quarter of previous year.

The return on shareholders' funds for the year is 16.3%.

H.E. Nasser Alsowaidi, Chairman of NBAD said,"The bank continues to deliver a strong and sturdy performance in the face of continued political and economic uncertainties, regionally and globally. The Group's business model and its professional management are its core strengths."

Mr Michael Tomalin, Group Chief Executive, commented, "2011 has been one of the most difficult years ever in global banking. The region has also been affected by the Arab Spring, low interest rates and the Euro crisis.Nonetheless, NBAD has produced solid results with operating profits up 6.5% and top-line revenues up 10%. This year we have been particularly cautious regarding provisions, both for our properties which we had purchased forexpansion, and our credit portfolio, taking the general provisions toperforming credit risk-weighted assets to the 2014 Central Bank target of 1.5%,and adding appropriate specific provisions for non-performing loans. Despite these higher provisions, net earnings have remained steady; a good achievement in a year when many of our global peers have seen sharp falls in their income.

Most importantly, our external ratings have been retained and we remain amongst the 50 safest banks in the world and have become the safest bank in the Middle East. None of this could have been achieved without the skills of our people, the support of our customers and our homebase in Abu Dhabi."

OPERATING INCOME

Operating income for the year reached AED 7,881 million, up 9.8% compared with AED7,179 million for the previous year. Fourth quarter's operating income at AED 1,991 million is also higher by 9.6% when compared to the fourth quarter of 2010. Net interest income and net income from Islamic financing contracts for 2011 rose 10.6% to AED 5,803 million compared to 2010 while non-interest income was higher by 7.7% at AED 2,078 million.

The net interest margin was 2.48% for 2011, lower than 2.57% for the 2010 due to reduced yields on lending.

EXPENSES

We have continued our organic growth strategy and invested in our network, new markets, talent, brand and systems. Operating expenses for year ended 31December 2011 were AED 2,564 million, higher by 17.3% compared with the financial year ended 31 December 2010.

The cost to income ratio was 32.5% for 2011 comfortably within the medium-term cap of 35%.

The Bank extended its reach in UAE to 119 offices adding another 7 units in 2011 to its domestic network complemented by over 500 ATM's. Nine Business Banking centres were opened in 2011 in an ongoing effort to support the vitally importantsmall- and medium-sized enterprises (SMEs) sector. The Bank opened its 2^ndbranch in Jordan and its 9^thbranch in Oman,taking its international presence to 51 units across 12 countries at the end ofthe year. It plans to open its first office in Malaysia and has received the necessary consents to open a representative office in Shanghai in the first quarter of 2012.

OPERATING PROFITS

Operating profits grew by 6.5% to AED 5,317 million in2011 mainly driven by the international businesses and financial markets businesses, which achieved a growth of 26% and 18.7% year-on-year,respectively. Continuedgrowth in the Bank's Islamic banking operations and a 5-fold increase in theGlobal Wealth businesses also contributed to the increase in Group's operating profits.

IMPAIRMENT CHARGES

Net impairment charges were AED 1,499 million for the full year and AED 482 millionfor the fourth quarter of 2011. Before recoveries, impairment charges were AED1,719 million compared with AED 1,360 million in 2010.

Collectiveprovisions of AED 2,321million now represent 1.5% of the performing credit risk-weighted assets, wellahead of the Central Bank's 2014 target.

Non-performingloans increased to AED 4,839 million representing 2.94% of the loan book.

Anadditional charge of AED 89 million for impaired properties has been taken inthe quarter, making the total provisions of AED 159 million for the year forimpaired properties. Although the Bank owns many properties and land at lowhistoric cost, no revaluation profit has been taken in this or indeed earlieryears providing a significant hidden asset for the group.

BALANCE SHEET

Total Assets were AED 255.7 billion as at 31 December 2011, 20.9% up on 31 December 2010 and 5.6%up on 30 September 2011.

Loans and advances to customers were AED 159.5 billion, up 16.6% on 31 December 2010 and 2.4% upon 30 September 2011.

Customer deposits at AED 151.8 billion were up 23.3% in FY 2011 and by 6.5% compared to 30 September 2011.

Capital resources stood at AED 34.4 billion after dividend payments of AED 240 million on Government of Abu Dhabi (GoAD) Tier-I capital notes in 2011. Capital resources consist of shareholders' funds of AED 22.4 billion, GoAD Tier-I capital notes of AED 4 billion and subordinated notes of AED 8.0 billion.

Capital adequacy ratios (Basle-II) remain well above the minimum 12% required by the UAE Central Bank and (prospective) Basle-3 with a capital adequacy ratio of20.7% and a Tier-I ratio of 15.6% as at 31 December 2011.

EMIRATISATION

The Emiratisation ratio was 38.3% with the head count of UAE Nationals increasing by over 5% in 2011.

CREDIT RATINGS

NBAD 's long term ratings continue to remain amongst the strongest combined ratings ofany financial institution in the MENA region with ratings from Moody's Aa3, Standard & Poor's A+, Fitch AA-, RAM (Malaysia) AAA and R&I's (Japan)rating of A+.

ACCOLADES & RECENT DEVELOPMENTS

For the third consecutive year, NBAD was the Official Bank of Formula 1^TM Etihad Airways Abu Dhabi Grand Prix held in November at the Yas Marina Circuit.

During the year, the Bank received several accolades. To name a few:

· Global Investor magazine awarded NBAD the Best Asset Manager of the year in addition to CEO of the Year (in the Middle East) award

· Best Bank in the UAE from Euromoney - fifth time in 10 years and the third consecutive year that NBAD has won this title

· Best Risk Management in the MENA and the Best Bank in UAEat the Bankers' Middle East Industry Awards for Excellence 2011

· Best Arranger of Middle Eastern Loans award from Euroweek - NBAD is the first bank from the region to win this award

· Best Investment Product by Banker Middle East to the Gulf's first exchange traded fund (ETF) - NBAD 's 'One Share Dow Jones UAE 25'

· NBAD 's Arrow service was adjudged the Best International Money Transfer Programme 2011 at the Mobile Money Awards

· Best Financial Information Website in the Middle East, for the second consecutive year, at the Hallvarsson & Halvarsson's annual Web ranking Awards

· Best Corporate Social Responsibility programme by emeafinance

DIVIDENDS

The Board of Directors has recommended a cash dividend of 30% and stock dividend of30% for the financial year ended 31 December 2011 subject to approval by the shareholders at the Annual General Meeting and the UAE Central Bank.

- Ends -

* Amongst the World's 50 Safest Banks in 2009, 2010 & 2011 by Global Finance

About NBAD
The National Bank of Abu Dhabi ( NBAD ), The Number OneBank in UAE, was incorporated in 1968 and is listed on the Abu Dhabi SecuritiesExchange (ADX), under stock code ( NBAD ).

Ranked as one of the top 50 safest banks in the world, NBAD currentlyoperates across 13 countries on four continents.

NBAD has a network of more than 115 branches and 500 ATMs to providebanking services to customers all over the UAE.

Besides brick & mortar branches, NBAD provides 24 hour internet bankingaccess through NbadOnline and NbadDirect, the SMS-based payment service (Arrow)as well as account access and personalised customer support through its 24-hourCall Centre.

NBAD 's overseas network stretches from Oman, Kuwait, and Bahrain in the G.C.C.;Egypt, Libya, and Sudan in Africa; UK, France, and Switzerland in Europe; HongKong and Jordan in Asia to Washington, D.C. in the U.S.A. Overall, NBAD hasnearly 50 branches and 60 ATMs outside the UAE.

NBAD provides its customers with a wide variety of financial services targetingall segments of the consumer and corporate markets.

NBAD 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 it one of the strongest combinedrating of any Middle Eastern financial institution.

For further enquires, please contact:
Ehab Khairi
Media & PR Manager
National Bank of Abu Dhabi
Tel: +97126111190
Email: ehab.khairi@nbad.com
Web: www.nbad.com

Abhishek Kumat
CFA, ACA
Asst Manager - Investor Relations (FinancialControl Division)
Tel : +971-2-6111334,
Email: Abhishek.Kumat@nbad.com
Web: www.nbad.com

© Press Release 2012