said first-quarter net profit fell 10.7% year over year as investment gainsdeclined and provisions rose.
First-quarternet profit totaled 1.27 billion United Arab Emirates dirhams, compared to 1.42billion dirhams in the same period a year ago. EPS declined yearover year to 23 fils from 26 fils.
Thenet impairment charge rose to 294.9 million dirhams from 170.2 million dirhamsin the first quarter of 2015, which the bank said reflected "prudentprovisioning in line with guidance and reflective of the challengingenvironment in which we are currently operating." Nonperforming loansrepresented 2.81% of total loans at the end of the first quarter, up from 2.76%three months earlier, while total provisions amounted to 110% of NPLs, up from105% at the end of 2015.
Netinterest income, including Islamic financing income, was 1.83 billion dirhamsin the first quarter, up from 1.79 billion dirhams in the year-ago period. Netfee and commission income rose over the same period to 570.8 million dirhamsfrom 517.3 million dirhams.
Theannualized net interest margin stood at 2.02% as of March 31, down from 2.04% ayear ago. The net foreign exchange gain increased year over yearto 322.8 million dirhams from 212.6 million dirhams.
Thebank booked a net loss on investments and derivatives of 83.0 million dirhamsin the first quarter, compared to a year-ago net gain of 138.8 million dirhams.
First-quarterROE declined on a yearly basis to 12.0% from 15.1%.
TheTier 1 ratio stood at 15.1% at the end of March, down from 15.7% at the end of2015 and up from 14.3% at March 31, 2015. The capital adequacy ratio stood at16.0% at March-end, compared to 16.7% at 2015-end and 15.5% at March 31, 2015.
As of April 26, US$1 wasequivalent to 3.67 United Arab Emirates dirhams.