Emirates NBD (ENBD.DU), opens new tab, Dubai's biggest bank by assets, reported a 13% rise in second-quarter net profit on Thursday, beating estimates on the back of loan growth and the positive performance of unit Emirates Islamic (EIB.DU), opens new tab.
Net profit attributable to shareholders for the April-to-June period came in at 7.1 billion dirhams ($1.93 billion), up from 6.2 billion dirhams a year ago.
Analysts were expecting a profit of 5.265 billion dirhams, according to LSEG data.
The quarter was helped by the strongest-ever results in the bank's Islamic business, improving margins at its Turkey-based lender DenizBank and "significant recoveries bolstered by a buoyant economy," CEO Shayne Nelson said in a statement.
Banks in the United Arab Emirates, where Emirates NBD is among the largest, have benefited from the Gulf region's growth prospects as regional governments boost investment into developing non-oil sectors and diversifying income sources.
Dubai, home to the world's tallest skyscraper and palm-shaped artificial islands, has become one of the world's fastest-growing cities, with a population of 3.6 million, according to the emirate's statistics centre.
Its property market has boomed amid a swift post-pandemic economic rebound, helped by relaxed residency rules.
Emirates NBD's total assets rose to 931 billion dirhams at the end of the second quarter, up 15% year-on-year, while lending was up 6% in the first half of the year.
Group net interest margin (NIM) improved to 3.65% in the second quarter from 3.52% in the previous quarter, as DenizBank's NIM grew on the back of favourable loan pricing and stable funding costs.
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