Dubai's largest bank Emirates NBD on Wednesday posted a 61 percent rise in third-quarter net profit as improving economic conditions pushed demand for retail financing to record levels.
The bank reported a net profit of 2.5 billion dirhams ($682 million) in the quarter ended September 30, versus 1.6 billion dirhams in the year-ago period, Emirates NBD said in a statement on Dubai Financial Market where its shares trade.
Hesham Abdulla al-Qassim, the bank's vice-chairman, said the "growth in income and profitability in the third quarter of 2021 is a clear sign of improving economic conditions within the region."
The lender made substantially lower impairment allowances, down 49 percent year-on-year (y-o-y) to 1.1 billion dirhams.
The bank said the strong operating performance came as "loan mix improved on strong demand for retail financing, a more efficient funding base and a substantially lower cost of risk."
Total income was up 7 percent on the previous sequential quarter 2021 as margins improved on record demand for retail financing, a more efficient funding base and a higher contribution from DenizBank, Emirates NBD said.
For the nine-month period, the lender made a net profit of 7.3 billion dirhams, up 29 percent (y-o-y).
Meanwhile, Emirates Islamic Bank made a third-quarter net profit of 236 million dirhams versus a loss of 323.1 million dirhams in the year-ago period.
(Writing by Brinda Darasha; editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021