Emirates NBD's 9-month profit up 24%

Emirates NBD, Dubai's largest bank, reported on Tuesday a strong set of results with net profit jumping 24 per cent year-on-year to Dh7.7 billion as net interest income jumped and impairments for bad loans eased.
The bank said net interest income increased 19 per cent year-on-year due to loan growth coupled with an improvement in margins. The operating performance was also supported by a 35 per cent year-on-year improvement in provisions."The bank's balance sheet remains solid with a further strengthening in capital due to retained earnings, healthy liquidity and an improvement in the non-performing loan ratio," it said.
For the third quarter, the bank posted a 16 per cent rise in net profit to Dh2.64 billion from Dh2.28 billion in the corresponding period of 2017. The bank, 55.6 per cent owned by state fund Investment Corp, is the latest UAE bank to report positive profit growth during the quarter and follows First Abu Dhabi Bank and Dubai Islamic Bank also reporting double-digit profit rises.
The bank's net interest margin increased by 35 bps year on year to 2.81 per cent helped by rate rises as total income improved 13 per cent to Dh 12.9 billion. Total assets increased by five per cent to Dh492.6 billion with customer loans increasing seven per cent to Dh324.7 billion and customer deposits rising by four per cent Dh341.2 billion.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD, said the bank has been named the UAE's Best Consumer Digital Bank and Liv., "Emirates NBD's lifestyle digital bank, has been named the UAE's Most Innovative Digital Bank by Global Finance this year. Furthermore, we have continued to embrace the Year of Zayed to honour the legacy of our nation's founding father, with numerous CSR activities."
Shayne Nelson, group chief executive officer, said the net profit growth was underpinned by higher net interest income on the back of loan growth coupled with an improvement in margins. "The bank's balance sheet remains solid with a further strengthening in capital due to retained earnings, coupled with an improvement in the non-performing loan ratio and healthy liquidity."
Nelson said in a sign of confidence from relationship banks, Emirates NBD successfully closed a three-year $ 2 billion term loan facility in September. "The deal was highly successful as demonstrated by the upsizing and improved pricing, reflecting Emirates NBD's strength as a leading bank in the Mena region, as well as its strong relationships with international banks."
Surya Subramanian, Group Chief Financial Officer, said the operating performance for the third quarter of 2018 was satisfying as all business segments delivered a year-on-year increase in both operating income and contribution to group profit. "Margins continued to improve as rate rises flowed through to loan book which more than offset a rise in deposit costs. The cost to income ratio was within guidance at 31.9 per cent for the first nine months of 2018, as we continue to invest in digital capabilities and people."
The bank, which raised a $2 billion three-year loan late last month, said in August it was closely monitoring the situation in Turkey after a plunge in the lira since it acquired Turkey's Denizbank from Russia's state-owned Sberbank in a $3.2 billion deal announced in May. - issacjohn@khaleejtimes.com