#Dubai's Emirates NBD third quarter profit rises 38% | Reuters

Dubai's Emirates NBD third quarter profit rises 38% | Reuters

Emirates NBD (ENBD.DU), Dubai's biggest lender by assets, said on Thursday its third-quarter net profit rose 38% year-on-year, partly due to loan growth and steady low-cost funding that allowed the bank to benefit from higher interest rates.

Profit for the quarter was 5.2 billion dirhams ($1.42 billion), roughly in line with analysts' median estimate of 5.18 billion dirhams, according to LSEG data.

The bank, majority owned by the government of Dubai, reported a 29% rise in net interest income to 7.8 billion dirhams, while non-funded income rose 49% to 3.6 billion dirhams.

At the end of September, total assets were up 16% year-on-year to 836 billion dirhams, gross loans were up 8% to 494 billion and deposits were 19% higher at 570 billion.

Its non-performing loans ratio dipped to 5.5% from 5.8% a year earlier. Impairment allowances dropped 54% "as credit quality improved, reflecting the group's prudent approach to credit provisions", it said in its statement.

Hesham Abdulla Al Qassim, vice chairman and managing director, said lending to small and medium businesses rose 34% in the United Arab Emirates, "supporting this important sector and bedrock of the economy".