National Bank of Abu Dhabi PJSC booked a fourth-quarter 2016 net profit of 1.33 billion United Arab Emirates dirhams, up from 1.04 billion dirhams in the same period a year ago, thanks to higher revenues and lower expenses and impairment charges.

Net interest income, including net income from Islamic financing, declined on a yearly basis to 1.83 billion dirhams from 1.84 billion dirhams in the fourth quarter of 2015. Noninterest income rose over the same period to 885 million dirhams from 713 million dirhams.

Net impairment charges amounted to 311 million dirhams in the fourth quarter of 2016, down from 436 million dirhams in the year-ago period. Operating expenses for the quarter totaled 996 million dirhams, down 4.2% year over year.

ROE for the period reached 11.6%, up year over year from 9.7%. The annualized net interest margin declined to 1.85% from 1.94%.

The bank reported net profit for full year 2016 of 5.30 billion dirhams, compared to 5.23 billion dirhams in 2015. Net interest income fell to 6.82 billion dirhams from 6.94 billion dirhams, but net income from Islamic financing contracts rose to 484.5 million dirhams from 363.0 million dirhams.

The Tier 1 ratio stood at 16.9% at the end of December 2016, up from 15.8% at the end of September 2016 and 15.7% as of Dec. 31, 2015. The capital adequacy ratio also rose to 18.1% at 2016-end from 17.0% as of Sept. 30, 2016, and 16.7% at 2015-end.

As of Jan. 30, US$1 was equivalent to 3.67 United Arab Emirates dirhams.