The National Bank of Abu Dhabi (NBAD) said yesterday its fiscal second quarter net profit rose 2.5 per cent on year to Dh1.03 billion, a result that beat some analysts\' expectations. \"NBAD\'s second-quarter net profit is higher than our estimate of Dh1.01 billion,\" Shabbir Ahmad, banking analyst with EFG-Hermes told Gulf News. Shares of NBAD were unchanged yesterday at Dh11.05 on the Abu Dhabi Securities Exchange. Last year, during the same quarter, the bank\'s net profit stood at Dh1 billion, NBAD said in a statement. Article continues below However, the net profit for the first half of 2011 was 3.9 per cent lower at Dh1.95 billion compared to the first half of 2010, NBAD said. \"Our focus remains on top-line operating revenues which are up 10 per cent year on year. Given the weak global economy and some regional uncertainty, low interest rates and absence of any major exceptional items, this increase can be judged a fine achievement,\" commented said Michael Tomalin, the group chief executive of NBAD. As of June 30, the bank\'s total assets reached Dh246.5 billion, up 22.2 per cent on year, mainly driven by the growth in customer deposits. Loans and advances Loans and advances to customers increased to Dh153 billion in June, up 11.8 per cent since December 31. Customer deposits at Dh147.2 billion were up 31.2 per cent compared to June 2010. \"The gross impairment charge for the first half was Dh848 million, which after Dh152 million of recoveries reduced to a net charge of Dh696 million, comprising of collective provisions of Dh170 million, net specific charges of Dh481 million and other provisions for impaired assets of Dh45 million,\" NBAD said. It added: \"Our collective provision of Dh2,062 million is 1.39 per cent of the credit risk-weighted assets, in line with Central Bank\'s requirement for banks to have a collective provision of 1.5 per cent of credit risk-weighted assets by the end of 2014.\" Non-performing loans increased to Dh4,172 million representing 2.65 per cent of the loan book, the bank said. \"The bank\'s loan growth was very strong, resulting in higher revenues for the bank. Investment gains also supported revenues. As far as NBAD\'s asset quality is concerned, although the NPL ratio has gone up slightly quarter on quarter, the pace of increase has slowed down,\" said EFG-Hermes\' Ahmad. \"The strong earnings momentum should continue in the third quarter, given that deposits have grown in the second quarter giving an indication that there\'s going to be further loan growth in the third quarter,\" he added. Naveed Ahmad, senior financial analyst at Kuwait-based Global Investment House said NBAD\'s second quarter figures were in line with their expectations. \"Net interest income jumped due to volumetric growth while net interest margins remained under pressure. Fee and commission income remained strong, as expected with the surviving the impact of the new retail regulations by the Central bank of the UAE. During the quarter, non-performing loans increased by Dh397 million or 11 per cent quarter-on-quarter leading to a 9 basis points increase in the NPL ratio,\" he added. \"As anticipated, the bank\'s loans witnessed a robust jump with the addition of Dh10 billion while deposit growth remained strong as well. We believe that a slight increase in our top-line estimates and operating expenses for the full year may be required,\" said Ahmad.