Dubai – Mubasher: Emirates NBD on Wednesday reported a 4% year-on-year rise in its net profits for the first quarter of the year, according to a statement.
Profits stood at AED 1.87 billion ($509 million), up from AED 1.8 billion ($490 million) reported in Q1-16.
Quarter-on-quarter, the Dubai-based bank’s profits increased by 1%.
Controlling expenses as well as lower provisions helped boost operating performance, while net interest income improved 1% on a quarterly basis on the back of loan growth and improved margins.
Commenting on the group’s performance, Emirates NBD vice chairman and managing director Hesham Abdulla Al Qassim stated that the bank has “made an encouraging start to the year with a 4% growth in net profit and further strengthened its balance sheet, with improvements in credit quality and liquidity, coupled with strong capital ratios.”
“Core gross fee income increased 27% quarter-on-quarter and 7% year-on-year on the back of higher income from forex and rates,” Emirates NBD revealed, noting that the net interest margin increased in Q1-17 “as rate rises flowed into loan yields and funding pressures receded.”
The Dubai-listed bank highlighted that its balance sheet has continued to strengthen with further improvements in credit quality and liquidity, alongside solid capital ratios.
Emirates NBD’s total assets increased by 1% to AED 452.0 billion in Q1-17, from figures recorded at the end of 2016.
Customer loans rose 2% quarter-on-quarter to AED 295.3 billion, while customer deposits grew 3% to AED 319.2 billion from end-2016.
“We are delighted that our investment bank and asset management units successfully completed the UAE’s first IPO of 2017 with the launch of ENBD REIT,” Al Qassim added, noting that Emirates NBD was awarded the title of the UAE’s most valuable banking brand, and 75th worldwide, by The Banker.
Meanwhile, Emirates NBD Group CEO Shayne Nelson stated that the banking group’s liquidity position remained strong and that the bank is focused on improving its margins by enhancing its funding base.
“We unveiled Liv., the UAE’s first digital bank targeted at millennials, which offers a differentiated digital experience for a new generation of customers. We are well positioned to utilise our strong franchise, digital capabilities, and financial strength to take advantage of growth opportunities within the region,” he added.
