Emirates NBD reports 50 per cent rise in profits

23 July 2013

Rising fee income and lower than expected problem loans help boost performance

Emirates NBD, one of the largest banks in the region, has reported a 50 per cent rise in profit in the second quarter, as fee income rose and the bank benefitted from an economic recovery in the emirate.

The bank said net income rose to AED972m ($264.6m) from AED647m in the same period of 2012.

In a sign Emirates NBD is getting past the problems caused to its loan portfolio as a result of the recession in Dubai in 2009, the bank said its non-performing loans (NPL) ratio fell to 13.9 per cent at the end of the second quarter, from 14.3 per cent at the end of 2012.

NPL growth is also slowing, according to the bank’s chief financial officer, Surya Subramanian. He said Emirates NBD was now lowering its guidance for NPLs at the end of 2013 to 14-15 per cent, from previous expectations of 15-16 per cent.

The bank said loan growth in the second quarter was 5 per cent, while deposits rose by 3 per cent. Assets rose by 6 per cent to AED334.8bn at the end of June.

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