Emirates NBD, Dubai's biggest bank by assets, said its second-quarter profit rose 5.8 per cent, thanks to higher loan rates, tighter expenses and lower provision costs.
Net profit increased to Dh2.02 billion versus Dh1.9bn in the same period last year, the bank said in a statement on Wednesday morning. Net interest income rose 3.4 per cent to Dh2.2bn in the three months ended June compared to Dh2.1bn in the same period last year.
“Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased,” the bank said.
“The operating performance was also supported by a control on expenses and lower provisions.”
Net non-interest income, the money the bank makes from fees and commissions, advanced 2.4 per cent to Dh745 million. Net impairment losses meanwhile fell by just under one per cent to Dh621m
Three analysts polled by Reuters forecast an average net profit of Dh1.9bn for the bank in second quarter.
Net profit at subsidiary Emirates Islamic meanwhile rose 80 per cent year on year to Dh165.7m for the second quarter, in spite of a 5 per cent fall in income.
ENBD’s sharia compliant subsidiary saw its impairment bill fall 27 per cent to Dh175m, with profitability also boosted by a 26 per cent drop in personnel expenses compared with the same period last year.