Emirates NBD has reported net profit of AED7.24bn for the year ended 31 December 2016, up 2% compared to AED7.12bn a year ago.

The bank attributed the rise in net profit to asset growth and higher recoveries that helped offset lower non-interest income.

Total income stood at AED14.7bn, a decrease of 3% from AED15.23bn a year ago. Net interest income dipped 1% year-on-year to AED 10.11bn.

As at 31 December 2016, the bank’s capital adequacy ratio was 21.2% and Tier 1 capital ratio was 18.7%.

The bank's Retail Banking & Wealth Management (RBWM) unit posted total income of AED 6.17bn for the year ended December 2016, an 8% rise from the previous year. The unit’s net interest income increased 7% to AED3.78bn and fee income increased 11% to AED2.39bn, driven by growth in wealth, foreign exchange and credit card businesses.

Emirates NBD group CEO Shayne Nelson said: “Emirates NBD delivered a solid performance in 2016. Net profit increased by 2% to AED 7.24 billion, underpinned by asset growth, a control on expenses and an improved cost of risk. The Bank’s stable and resilient financial profile were recognized by Moody’s in June when they upgraded Emirates NBD’s long-term rating to A3.

“The Group’s liquidity position remained strong, bolstered by a stable and highly diversified deposit base and our ability to raise over AED 20 billion of term funding. Given the ongoing challenging environment, we will remain focused on controlling expenses and managing risks whilst ensuring that we continue to invest to support future growth.”