Sunday, Apr 28, 2013
(versions of this article were originally published on Thursday)
DUBAI (Zawya Dow Jones)--Emirates NBD (EMIRATES.DFM), Dubai's largest bank, on Thursday said it repaid 3 billion U.A.E. dirhams ($817 million) to the United Arab Emirates' Ministry of Finance, the latest domestic lender to return the state support it received during the financial crisis aimed at shoring up the banking sector.
ENBD said it repaid AED3 billion to the Ministry of Finance in April, according to a presentation accompanying its first-quarter results, published on its web site.
Several other U.A.E. banks, including National Bank of Abu Dhabi, First Gulf Bank and Abu Dhabi Commercial Bank have in recent weeks said they are repaying the government support funds, taking advantage of improved sentiment and lower funding costs.
Earlier Thursday, the bank reported a 31% rise in first-quarter net profit, helped by lower impairments and more robust lending.
ENBD's net profit for the quarter rose to 837 million U.A.E. dirhams ($227.9 million) from AED641 million in the corresponding period last year, according to the bank's financial statements. First-quarter revenue edged 2% lower to AED2.63 billion as fee income was flat and due to lower income from investment securities.
The lender recently announced that its chief executive Rick Pudner would leave his position around the end of the year. Mr. Pudner helped oversee the merger between Emirates Bank International and National Bank of Dubai that formed Emirates NBD. He was also at the helm during the financial crisis and Dubai's real estate market collapse from which the bank is still recovering.
During the quarter, ENBD took a AED888 million impairment charge to provision for some of its faulty corporate and Islamic assets. That is a 19% improvement compared to the AED1.1 billion impairment it took in the first quarter last year.
Lending rose 8% to AED220.6 billion and deposits grew 7% to AED223 billion compared to the same quarter in 2012.
ENBD's outlook remains very much tied to Dubai, which is enjoying a cautious economic rebound following the downturn of recent years.
"Although the external environment remains challenging, economic data in the first quarter of 2013 supports our view that growth is likely to accelerate to 3.8% this year from an estimated 3.7% in 2012," the bank said.
"Emirates NBD is well placed to capitalise on the improving economic fundamentals," it added.
The lender's shares closed 10.6% higher at AED4.99 Wednesday.
Write to Nicolas Parasie at nicolas.parasie@dowjones.com
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(END) Dow Jones Newswires
28-04-13 0350GMT
