Emirates NBD, Dubai’s largest bank, reported on Wednesday a rise in first quarter earnings for 2019, beating analysts’ expectations.
The bank’s Q1 2019 net profit attributable to equity holders amounted to 2.74 billion United Arab Emirates dirhams ($745.98 million), compared to 2.39 billion dirhams in Q1 2018, translating into a 14.64 percent increase and 9 percent higher than SICO Bank’s estimate.
“The beat to our estimate was on higher non-interest income and lower than expected opex (operating expenses) and provisioning,” Chiro Ghosh, lead research analyst for financial institutions at SICO Bank told Zawya by email.
Non-interest income grew 17.69 percent year-on-year in Q1 2019 and operating expenses increased by 9.48 percent.
“However, even excluding these, the bank reported an 8 percent YoY (year-on-year) core earnings growth,” Ghosh said.
“We see this as a healthy performance, with robust core earnings growth supported by (a) pick-up in (the) balance sheet,” he added.
The company’s shares were trading 0.42 percent lower at 11.95 dirhams by 14:27 GST and have gained 34.42 percent so far since the start of 2019.
In a press release accompanying the bank's results, the group’s chief executive officer, Shayne Nelson, said: “Emirates NBD delivered a strong set of results with net profit advancing by 15 percent to reach AED 2.7 billion in the first quarter, underpinned by higher income on the back of loan growth, stable margins, and increased foreign exchange and derivative income."
"The Bank’s balance sheet remains strong with an improvement in liquidity and capital ratios and a stable credit quality," he added.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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