Emirates NBD third quarter profit drops 59 per cent

25 October 2011

Provisioning rises in third quarter

Emirates NBD, the largest bank in the region by assets, has reported a 59 per cent decline in profit in the third quarter as a result of rising provisions, mainly because of debt restructurings at Dubai Holding.

The bank, which took over troubled lender Dubai Bank earlier in October, also announced a 6 per cent fall in its assets compared to the previous quarter, a two per cent rise in loans and an 8 per cent fall in deposits. The figures illustrate that banks are still struggling to grow their loan book and find new deposits. Net interest income rose by 13 per cent, while non interest income fell by 24 per cent. Total income was up by just 1 per cent.

Emirates NBD said in a statement that it expects to complete the Dubai Bank transaction by the end of the year, and that so far it has not been accounted for in the company’s results.

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