Emirates NBD has reported a net profit of AED1.8bn for the first quarter of 2016, up 8% from AED1.67bn in the prior year, driven by higher net interest income, control on expenses, and lower provisions.
For the quarter ended 31 March 2016, total Income increased 2% to AED3.9bn from AED3.84bn a year ago.
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Net interest income increased 3% to AED2.55bn from AED2.48bn in the corresponding quarter of 2015. The bank attributed the rise in income to overall loan growth that helped offset a contraction in margins.
Non-interest income dropped 1% year-on-year to AED1.35bn from AED1.36bn.
At the end of the quarter, the bank’s capital adequacy ratio stood at 20.3%, while Tier 1 capital ratio was 17.6%.
The bank’s Retail Banking & Wealth Management (RBWM) unit registered an operating income of AED1.51bn for the first quarter, a rise of 8% from the year ago quarter.
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By GlobalDataNet interest income increased 6% year-on-year to AED918m, and fee income increased 11% to AED595m. The rise in income was driven by growth in foreign exchange remittance, Wealth Management and the credit card business.
Wealth Management, particularly Private Banking, registered a strong performance, with growth in revenue driven by investment-related fee income.
Emirates NBD group CEO Shayne Nelson said: "Liquidity pressures in the sector continued to ease in the first quarter from the tight conditions experienced in the second half of 2015. Wholesale Banking, Global Markets & Treasury and Retail Banking & Wealth Management units all delivered a solid first quarter. We remain cautiously optimistic for the remainder of 2016 but are conscious of the headwinds that a strong dollar and volatile oil price can present."
