Emirates NBD, Dubai’s largest lender, posts 51% rise in third-quarter net profit
Emirates NBD, Dubai’s largest lender, reported a 25% year-on-year (YoY) increase in net profit on the back of strong loan growth and high interest rates.
Its third-quarter net profit rose 51% year-on-year to AED3.8 billion, surpassing the equivalent of $1 billion, while net interest income rose 37%, driven by improving the composition of loans and deposits.
Net profit for the first nine months of the year reached AED9.1 billion ($2.4 billion), compared to AED7.3 billion in the same period last year and almost level earnings for the year 2021, the bank said in a stock market filing on Thursday.
“Group benefit [was] up 25% on strong growth in diversified revenue,” the bank said.
The bank said higher interest rates had passed through to margins, while loan growth was strong.
“[There was] strong new loans from retail and corporate customers,” the filing said.
Its unfunded revenue grew 83% year-on-year during the period, driven by higher activity that includes local and international card transactions.
The bank’s subsidiary, Emirates Islamic, also recorded AED353.4 million in profit in the third quarter, compared to AED235.5 million year-on-year.
Total revenue for the quarter increased by 32% year-on-year to reach AED815 million. Net profit for the first nine months of 2022 increased 31% year-on-year to AED 1.054 billion, with total revenue for the period up 22% to AED 2.185 billion.
CEO Salah Mohammed Amin said the bank has seen improvements in retail, corporate and wholesale banking, with customer funding up 12% in the first nine months and its diversified deposit base of 16%.
(Reporting by Cleofe Maceda, with contributions by Imogen Lillywhite; editing by Seban Scaria)