Emirates NBD, Dubai’s biggest lender, on Thursday reported a net profit of 6.72 billion dirhams ($1.82 billion) in Q1 2024, up 12% from AED 6.02 billion in the same period last year on higher income coupled with recoveries on impaired loans.

The net profit beat analysts’ mean estimate of AED 4.5 billion, according to LSEG data.

Total operating income was AED 10.66 billion versus AED 10.46 billion in the prior-year period on "excellent deposit mix, solid loan growth and strong fee & commission growth across all business segments," the lender said in a staement on Dubai's DFM where its shares trade.

Its asset base grew 5% in Q1 to surpass the AED 900 billion mark for the first time, it added.

Emirates NBD said deposits were up 13% year-on-year (YoY) at AED 610 billion as of March 31, 2024.

Gross loans were up 5% at AED 492 billion.

Net interest income was AED 5.96 billion versus AED 5.95 billion in the prior year period.

The bank recorded a net impairment credit of AED 0.9 billion compared with impairment loss of AED 0.5 billion in Q1 2023.

Patrick Sullivan, Group Chief Financial Officer said: "The credit environment remains healthy, and clients continue to benefit from a buoyant economy with further regularisation of loan payments, leading to a net impairment credit of AED 0.9 billion."

(Reporting by Brinda Darasha; editing by Seban Scaria)