Emirates NBD has reported net profit of AED3.72bn for the first half of 2016, an increase of 12% compared to AED3.31bn a year ago.

The rise in profit was supported by an increase in total income, driven by asset growth and higher core fee income, along with higher recoveries, the UAE-based lender said in its earnings statement.

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For the half year ended 30 June 2016, total Income was AED7.67bn, a rise of 2% from AED7.55bn in the prior year.

Net interest income increased 2% to AED5.09bn from AED4.98bn in the first half of 2015. The bank attributed the rise in net interest income to overall loan growth that helped offset a contraction in margins.

Non-interest income was steady at AED2.57bn during the period.

As at 30 June 2016, the bank's capital adequacy ratio stood at 20.5%, while Tier 1 capital ratio was 17.8%.

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The bank's Retail Banking & Wealth Management (RBWM) unit posted total income of AED3.03bn for the first half of 2016, a rise of 8% compared to the same period in 2015.

The unit’s net interest income increased 7% to AED1.85bn and fee income increased 9% to AED1.17bn. The rise in income was driven by growth in wealth management, FX income and credit card business, the bank said.

Emirates NBD group CEO Shayne Nelson said: I am delighted that we have delivered another strong set of financial results driven by higher income from asset growth and lower provisions due to improving asset quality. The Group’s improved and resilient financial profile was also reflected in the recent upgrade of Emirates NBD’s long-term rating to A3 by Moody’s.

“We also announced our intention to invest AED 500 million over the next three years towards digital innovation as we look to launch the UAE’s first digital bank for millennials. This will create a new paradigm in the way people bank in the UAE. It will offer customers the next generation of self-service money management with innovative tools and applications.”