First-quarter net profit rose to 1.03 billion dirhams ($280.4 million) from 770 million dirhams in the year-ago period.
The bank's earnings exceeded analysts' average estimate of 781.9 million dirhams in a Reuters poll.
The UAE's banking sector was hit hard by the global financial crisis as lending tightened and bad loans weighed.
In addition, local banks are expected to suffer a big hit related to the debt restructuring of state conglomerate Dubai World.
NBAD's first-quarter loans and advances rose 15 percent compared with the same period last year but only a marginal increase of 1 percent from 132.3 billion dirhams in the previous quarter.
First-quarter deposits increased 17 percent to 114.7 billion dirhams. Net impairment charges for March 2010 were 225 million dirhams.
"With capital resources of some 30 billion dirhams the bank is well positioned to take advantage of the first signs of global recovery," Michael Tomalin, the group's chief executive said in a statement.
Impaired loans, during the first quarter of 2010, were 1.78 billion dirhams on a portfolio of 134 billion dirhams, representing a non-performing loan (NPL) ratio of 1.30 percent, NBAD said.
In March, NBAD became the first UAE issuer to tap the international bond markets after Dubai World's debt announcement. The bank sold a $750 million five-year bond which was oversubscribed.
Moody's recently warned that adverse economic conditions could continue putting pressure on UAE banks' results.
