Dubai's Emirates NBD third-quarter profit rises 23% on strong loan growth | Reuters

Dubai's Emirates NBD third-quarter profit rises 23% on strong loan growth | Reuters

Emirates NBD (ENBD.DU), opens new tab on Thursday reported a 23% rise in third-quarter net profit, driven by record loan growth, days after the Emirati bank said it would invest $3 billion in RBL Bank (RATB.NS), opens new tab, the largest cross-border deal in India's financial sector.

Dubai's biggest lender by assets said its net profit was 6.4 billion dirhams ($1.74 billion) in the quarter ended September 30, beating analysts' expectations of 5.54 billion dirhams, according to mean estimates compiled by LSEG.

The lender revised its full-year loan growth guidance upwards to a low 20% range, on the back of a surge in demand in the third quarter, Group CFO Patrick Sullivan said in a statement.

UAE banks have benefited recently from rising credit demand as regional governments invest in sectors such as tourism and infrastructure to diversify their economies beyond oil.

In Dubai, the Gulf's tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices.

Emirates NBD, majority-owned by Dubai's government, said loans surged 19% since the beginning of the year to 628 billion dirhams as of end-September, while deposits grew 14% to 760 billion dirhams.

Its total assets reached 1.14 trillion dirhams, as of the end of the third quarter.
Emirates NBD, which is acquiring a 60% stake in RBL, said on Thursday the transaction is expected to be completed by the end of the second quarter next year.

Most Gulf markets gain on earnings and oil | Reuters

Most Gulf markets gain on earnings and oil | Reuters

Most stock markets in the Gulf ended higher on Thursday, helped by corporate earnings announcements and rising oil prices.

Dubai's main share index (.DFMGI), opens new tab gained 0.7%, led by a 2.8% rise in toll operator Salik (SALIK.DU), opens new tab and a 1.8% increase in Emirates NBD Bank (ENBD) (ENBD.DU), opens new tab.

ENBD, Dubai's biggest lender by assets, reported a 23% increase in third-quarter net profit to 6.4 billion dirham ($1.74 billion), beating analysts' expectations of 5.54 billion dirham, according to mean estimates compiled by LSEG.

Elsewhere, Emirates Central Cooling Systems Corporation (EMPOWER.DU), opens new tab advanced 1.9%, a day after the firm signed a contract to construct its second district cooling plant in Jumeirah village.

Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 8.2% surge in Tourism Enterprise Company (Shams) (4170.SE), opens new tab. On Sunday, Shams' shareholders approved amending the company's share par value to 10 riyals per share from 0.50 riyal.

Among other gainers, Electrical Industries Company (1303.SE), opens new tab leapt 4.5%, following a sharp rise in quarterly net profit.

Oil prices - a catalyst for the Gulf's financial markets - rose nearly 5% after the U.S. imposed sanctions on major Russian suppliers Rosneft (ROSN.MM), opens new tab and Lukoil (LKOH.MM), opens new tab over the war in Ukraine, extending gains from the previous session.

In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.4%, weighed down by a 4.2% slide in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab, despite reporting a rise in third-quarter profit.

The Qatari index (.QSI), opens new tab added 0.3%, with Commercial Bank (COMB.QA), opens new tab gaining 2.7%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed 0.3% higher, snapping two sessions of losses.

The EU economy commissioner, Valdis Dombrovskis, and Egypt's Planning Minister Rania Al-Mashat presented a memorandum of understanding for a second 4 billion euro ($4.66 billion) financing, the EU said on Wednesday.