Emirates NBD, Dubai's biggest bank, reported a 30 per cent rise in second-quarter net profit, beating analysts' forecasts, thanks to higher net interest income and lower provisions.
Net profit attributable to equity holders rose to Dh2.6 billion ($700 million) in the first three months of 2018, Emirates NBD said on Wednesday in a filing to the Dubai Financial Market, where its shares are traded.
The results beat the median forecast of Dh2.2bn, according to a Bloomberg poll of two analysts. Net impairment loss on financial assets fell 97 per cent to Dh314m from a year-earlier period.
“For the first time in the group’s history, Emirates NBD delivered a half-yearly net profit in excess of Dh5bn underpinned by higher net interest income on the back of loan growth and improving margins and a lower cost of risk,” said Shayne Nelson, group chief executive of Emirates NBD.
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“The bank’s balance sheet remains solid with a further strengthening in capital due to retained earnings, coupled with stable liquidity and credit quality ratios.”
Net interest income improved 20 per cent year-on-year on loan growth and helped by a continuing improvement in margins, which rose by 33 basis points year-on-year to 2.78 per cent, helped by rate rises, the bank said.
Total income rose 13 per cent year-on-year in the second quarter to Dh8.5bn, while customer loans were up 4 per cent to Dh316.4bn and customer deposits rose 3 per cent to Dh335bn. Total assets stood at Dh477.5bn, up 2 per cent from the end of 2017, the bank said.
