Emirates NBD’s Nine -month
Net Profit Soars 33 Per Cent

The lender, which has emerged as Middle East’s largest banking group, following the merger between two Dubai-based banks, said the growth in profit is driven by a continued strong performance in loans and deposits, confirmed a continuing growth momentum across its core businesses.

The bank’s total income surged 38 per cent to Dh6.66 billion, when compared with same period last year while earning per share rose 33 per cent year-on-year to Dh0.73.

In the third quarter, as the bank’s total income grew 18 per cent to reach Dh1.985 billion, net profit rose 13 per cent to Dh1.019 billion, compared to the 3^rd quarter of 2007.

The slow growth in the third quarter was due to the market-to-market write-downs on the bank’s investment portfolio, according to Rick Pudner, the bank’s Chief Executive Officer.

“While current conditions in the global financial markets will prove to be challenging, we remain strongly positioned to take advantage of opportunities this may present to us.”

Ahmed Humaid Al Tayer, Chairman of Emirates NBD, said the results underlined the strength of the bank and highlighted its ability to perform despite the challenging conditions in which the sector currently finds itself.

“As the nation’s banking champion we are proud to be leading a strong banking sector through globally turbulent times.”

According to the bank, the growth was primarily driven by a continued strong performance in loans and deposits, strong fees and commission income and effective cross selling and productivity initiatives.

“This was partly offset during the third quarter by write-downs of Dh273 million arising from the revaluation of the group’s investment securities following the global and regional declines in asset valuations,” the bank said and added excluding the impact of these mark to market write-downs on the investment and securities portfolio, core business income during third quarter of 2008 increased 44 per cent when compared to same quarter last year.

The bank said credit quality remained strong across corporate and retail portfolios. “We remain comfortable with our loans and receivables book,” it said.

issacjohn@khaleejtimes.com