Emirates NBD has reported a net profit of AED1.87bn for the first quarter of 2017, up 4% compared to AED1.81bn a year ago.
The bank attributed the rise in net profit to asset growth, a control on expenses and reduced provisions that helped offset lower non-interest income.
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For the quarter ended 31 March 2017, the banking group’s total income was AED3.6bn, a fall of 7% from AED3.90bn in the prior year.
Net interest income dropped 3% to AED2.48bn from AED2.55bn last year, while non-interest income slumped 16% year-on-year to AED1.31bn.
The bank’s capital adequacy ratio and tier 1 capital ratio at the end of 31 March 2017 were 20.2% and 17.8%, respectively.
The bank’s Retail Banking & Wealth Management (RBWM) unit posted total income of AED1.67bn for the first quarter of 2017, a 10% rise compared to the prior year driven by growth in net interest income from liabilities.
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By GlobalDataThe unit’s fee income increased 5% year-on-year and comprises 37% of revenues.
“Private Banking attracted additional Assets under Management from all client segments and replaced extraordinary income in previous quarters with core revenue. Emirates NBD Asset Management successfully listed the ENBD REIT on Nasdaq Dubai, having raised more than $100m new money,” the bank said in its earnings statement.
Emirates NBD group CEO Shayne Nelson said: “Emirates NBD delivered a solid set of results in the first quarter of 2017. Net profit increased by 4% to AED 1,873 million, underpinned by a control on expenses and an improved cost of risk. The Group’s liquidity position remained strong and we are focused on improving margins by enhancing our funding base.
“We unveiled Liv., the UAE’s first digital bank targeted at millennials, which offers a differentiated digital experience for a new generation of customers. We are well positioned to utilise our strong franchise, digital capabilities and financial strength to take advantage of growth opportunities within the region.”
