Emirates NBD has reported a net profit of AED8.35bn ($2.2bn) for the year ended 31 December 2017, an increase of 15% compared to AED7.24bn ($1.9bn) a year ago.

The bank attributed the rise in net profit to asset growth, a control on expenses and reduced provisions.

The banking group’s total income was AED15.45bn, up 5% compared to AED14.75bn a year ago.

Compared to the previous year, non-interest income increased 1% to AED4.67bn and net interest income increased 7% to AED10.78bn.

The bank’s capital adequacy ratio and tier 1 capital ratio at the end of December 2017 were 21.9% and 19.5%, respectively.

The banking group’s Retail Banking & Wealth Management (RBWM) arm generated revenues of AED6.83bn for the year ended 31 December 2017, an increase of 11% compared to the year ago period.

The division’s net interest income surged 17% year-on-year, driven by liabilities. The unit’s fee income rose 1% from the previous year, driven by wealth, FX and cards businesses.  Investment AUMs at Private Banking grew 17% year-on-year.

Emirates NBD group CEO Shayne Nelson said: “Emirates NBD delivered a record performance in 2017 as net profit increased by 15% to reach a new high of AED 8.35 billion, underpinned by higher income, a control on expenses and a lower cost of risk. Margins widened 22 bps in 2017, helped by rate rises and improved funding costs. The Group’s balance sheet continued to strengthen, with further improvements in capital and liquidity and a stable credit quality profile.”