Emirates NBD, Dubai’s biggest lender by assets, has posted a 119% year-on-year jump in first-quarter profit to $1.6 billion (AED 6 billion), helped by the bank’s “strong and diversified” income growth and significant recoveries.
The lender registered a 64% surge in total income for the quarter to $2.9 billion (AED 10.5 billion), exceeding the $2.7 billion (AED 10 billion) mark for the first time, Emirates NBD said in a statement. Emirates NBD attributed the increase to its “excellent deposit mix,” with higher interest rates feeding through to margins and strong growth across all business segments and products.
Net interest margin saw a significant year-on-year 145 basis points increase. A 66% year-on-year drop was recorded in impairment allowances on successful recoveries as the coverage ratio increased to 152%.
The bank said its credit quality improved with a non-performing loan (NPL) ratio of 0.4% lower than the previous quarter at 5.6%, enabling improved credit quality forecast. Customer loans went up 3% during the period with highest-ever retail disbursements across conventional and Islamic retail franchises coupled with strong new corporate lending.
Emirates NBD recorded a 117% jump in earnings per share. Deposits during the quarter grew 7% to $9.5 billion (AED 35 billion), including a beneficial $5.1 billion (AED 19 billion) increase in current and savings accounts
