Dubai lender Emirates NBD reports 5.8% rise in second-quarter profit

Emirates NBD is Dubai’s largest lender bank by assets. (Reuters)

DUBAI: Emirates NBD, Dubai’s largest lender by assets, on Wednesday reported its second-quarter profit rose 5.8 percent to Dh2.02 billion (SR2.06 billion) versus Dh1.9 billion in the same period of last year.
Net interest income rose 3.4 percent to Dh2.2 billion in the three months ended June compared with Dh2.1bn last year. Net non-interest income, the which the bank earns from fees and commissions, grew 2.4 percent to Dh745 million while impairment losses fell by just under one percent to Dh621 million.
“Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased,” the bank said in a statement.
“The operating performance was also supported by a control on expenses and lower provisions.”
For the first half, the bank said net profit rose 5 percent to Dh3.9 billion while net interest income improved 2 percent to Dh5.1 billion, “due to loan growth and helped by a recent improvement in margins.
“Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased. The operating performance was also supported by a control on expenses and lower provisions,” it said.
Total income for the six-month period however declined 3 percent to Dh7.5 billion on lower gains from the sale of investments.