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Emirates NBD, Dubai’s biggest lender, has posted a 25% year-on-year (YoY) rise in net profit on the back of strong lending growth and high interest rates.
Its Q3 net profit rose 51% YoY to AED3.8 billion, exceeding the $1 billion equivalent, while net interest income was 37% higher, driven by improved loan and deposit mix.
Net profit for the first nine months of the year reached AED9.1 billion ($2.4 billion), up from AED7.3 billion in the same period last year and almost at 2021 full-year profit level, the bank said in a bourse filing on Thursday.
“Group profit [was] up 25% on strong diversified income growth,” the bank said.
The bank said higher interest rates had fed through to margins, while lending growth was strong.
“[There was] strong new lending from retail and corporate customers,” the filing said.
Its non-funded income was up 83% YoY during the period, thanks to higher activity that includes local and international card transactions.
Emirates Islamic
The bank’s subsidiary, Emirates Islamic also posted AED353.4 million in profits for the third quarter, up from AED235.5 million YoY.
Total income for the quarter was up 32% YoY to AED 815 million. Net profit for the first nine months of 2022 was up YoY by 31% to AED 1.054 billion, with total income for the period up 22% to AED 2.185 billion.
CEO Salah Mohammed Amin said the bank had seen improvements across retail, business and wholesale banking, with customer financing growing by 12% in the first nine months and its diversified deposit base growing by 16%.
(Reporting by Cleofe Maceda, with inputs from Imogen Lillywhite; editing by Seban Scaria)
