Four analysts on average had forecast the bank would make a net profit of Dh1.8 billion for the quarter. Pawan Singh / The National
Four analysts on average had forecast the bank would make a net profit of Dh1.8 billion for the quarter. Pawan Singh / The National

Emirates NBD says reduced impairments helped lift profit in first half of the year



Emirates NBD announced quarterly profit ahead of analyst forecasts, rising 16 per cent year-on-year for the three months to the end of June as lower levels of bad debt allowed the bank to reduce impairment charges.

However, Dubai’s largest bank warned that it would continue to face “headwinds” as lower oil prices contribute to tighter fiscal policy and slower growth in the UAE’s non-oil sector.

Net profit at Emirates NBD rose to Dh1.9 billion for the second quarter, compared with Dh1.6bn in the same period last year.

An average of forecasts from four analysts had predicted the bank would make a net profit of Dh1.8bn for the quarter.

Emirates NBD’s impaired loan ratio, reflecting the level of bad debt on its books, fell to 6.6 per cent at the end of June from 7.4 per cent a year earlier.

This in turn enabled the bank to reduce allowances for impaired debt in the first half of this year to Dh1.4bn, down from Dh1.9bn a year earlier.

“We find it a good set of numbers driven by strong growth and benign credit costs,” said Jaap Meijer, the managing director of equity research at Arqaam Capital in Dubai.

“With the Expo 2020 project awards, we expect [Emirates NBD] to be one of the key beneficiaries in Dubai.”

Such positive sentiment had little impact on the bank’s shares however, which ended a quiet day of trading unchanged at Dh8.50 each.

The bank’s loan book grew 12 per cent to Dh286 million at the end of June compared to a year earlier, while deposits grew 8 per cent year-on-year to Dh297.6m.

The group chief executive Shayne Nelson said the bank remains “cautiously optimistic for the remainder of 2016,” having raised Dh14bn last month to boost structural liquidity.

Emirates NBD said that it expects tighter liquidity conditions in the UAE and a strong dollar to “continue to pose headwinds to non-oil growth, particularly in the services sectors,” but that rising oil output in line with official targets would boost the country’s GDP growth.

Meanwhile, the bank’s Islamic banking subsidiary Emirates Islamic announced a fall in second-quarter profit to Dh92m from Dh253.2m a year earlier as impairments, net of recoveries, increased to Dh241m compared to Dh65.6m a year earlier.

jeverington@thenational.ae

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Dengue fever symptoms
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  • Severe headache
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  • Nausea
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If symptoms occur, they usually last for two-seven days

Salah in numbers

€39 million: Liverpool agreed a fee, including add-ons, in the region of 39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.

13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.

57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.

7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.

3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.

40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.

30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.

8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.

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Main card
Middleweight:

Robert Whittaker defeated Ikram Aliskerov via knockout (Round 1)
Heavyweight:
Alexander Volkov def Sergei Pavlovich via unanimous decision
Middleweight:
Kelvin Gastelum def Daniel Rodriguez via unanimous decision
Middleweight:
Shara Magomedov def Antonio Trocoli via knockout (Round 3)
Light heavyweight:
Volkan Oezdemir def Johnny Walker via knockout (Round 1)
Preliminary Card
Lightweight:

Nasrat Haqparast def Jared Gordon via split decision
Featherweight:
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Welterweight:
Rinat Fakhretdinov defeats Nicolas Dalby via split decision
Bantamweight:
Muin Gafurov def Kang Kyung-ho via unanimous decision
Light heavyweight:
Magomed Gadzhiyasulov def Brendson Ribeiro via majority decision
Bantamweight:
Chang Ho Lee def Xiao Long via split decision

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Engine: 4.0-litre, six-cylinder

Transmission: six-speed manual

Power: 395bhp

Torque: 420Nm

Price: from Dh321,200

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Three ways to boost your credit score

Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:

1. Make sure you make your payments on time;

2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;

3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.

MAIN CARD

Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari

Super heavyweight 94+kg
Adnan Mohammad v Mohammed Ajaraam

Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai

Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni

Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir

Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka

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Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

Tips to keep your car cool
  • Place a sun reflector in your windshield when not driving
  • Park in shaded or covered areas
  • Add tint to windows
  • Wrap your car to change the exterior colour
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Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
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Equestrian

Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).

Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).

Cycling
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Swimming

Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics

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Sly Cooper and the Thievius Raccoonus

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Publisher: Sony Computer Entertainment
Console: PlayStation 2 to 5
Rating: 5/5

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