Dubai's Emirates NBD Q3 net profit jumps 61% as retail financing picks up

Impairment allowances were 49% lower

  
General view of Emirates NBD Bank in Dubai, United Arab Emirates.

General view of Emirates NBD Bank in Dubai, United Arab Emirates.

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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)

brinda.darasha@refinitiv.com

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