Emirates NBD profits surge 25pc
Dubai, April 24, 2014
Emirates NBD, Dubai's largest lender, said on Thursday its first-quarter net profit rose 25 percent on the back of both interest and fee income, beating analysts' forecasts.
The lender, 55.6-percent owned by state fund Investment Corp of Dubai, made a net profit of 1.04 billion dirhams ($283.7 million) in the three months to March 31, a statement from the bank said, compared to 837 million dirhams in the same period last year.
An average of six analysts polled by Reuters forecast a net profit of 904.1 million dirhams for the first quarter.
Other result hightlights are:
* Total income of Dh3.3 billion, up 27pc from Q1 2013 and up 5pc from Q4 2013
* Pre-impairment Operating profit of Dh2.3 billion, up 34pc from Q1 2013 and up 18pc from Q4 2013
* Total assets up 1pc at Dh347.1 billion compared with Dh342.1 billion at the end of 2013
* Customer loans at Dh239.7 billion, up 1pc from Dh238.3 billion at the end of 2013
* Customer deposits at Dh251.5 billion, up 5pc from Dh239.6 billion at the end of 2013
* Headline Advances to Deposits (AD) ratio improved to 95.3pc from 99.5pc at the end of 2013
* Capital adequacy ratio at a healthy level of 19.2pc and Tier 1 ratio at 15.0pc
Group chief executive officer Shayne Nelson, said: “I am delighted that, in my first full quarter with the group, we have delivered a strong set of financial results with a net profit of Dh1,042 million, up 25pc in comparison with the same quarter in the previous year. This is driven by continued growth in total income which grew 27pc year-on-year helped by loan growth and an increase in fee income. The bank is well positioned to capitalise on our strong franchise and capital base and to take advantage of further expected improvements in the economic environment of Dubai and the UAE.”
Group chief financial officer Surya Subramanian said: "The operating performance for the first quarter of 2014 has strengthened, as demonstrated by the growth in both the total income and pre-provision operating profit. In Q1 2014, pre-impairment operating profit grew by 34% over the comparable period in 2013. Costs continued to be proactively managed and, despite competitive pressures, margins were maintained helped by a change in asset mix and improving funding base." - TradeArabia and Reuters