The Middle East’s biggest bank by assets,
Emirates NBD, has posted a 11.9 percent fall in first quarter net
profits to AED1.1 billion ($302.2 million), in the process beating
analyst forecasts.
Total assets grew by 3 percent to AED289.8
billion with total lending down 1 percent to AED211.9 billion and
deposits up 6 percent to AED191.3 billion.
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In a statement, Emirates NBD said that the
quarter witnessed “early signs of improved customer sentiment.”
But provisions for bad debts rose by 20 percent
from the year-ago-quarter to AED554.7 million, while the bank’s
non-performing loans ratio rose to 2.63 percent.
The bank also suffered from margin pressure with
its net interest margin falling by 43 basis points in the first
quarter to 3.01 percent.
In a statement, Emirates NBD CEO Rick Pudner
said: “Credit metrics remain in line with our expectations and our
focus on balance sheet optimisation has yielded a significant
improvement in our funding profile while maintaining strong
capitalisation levels.”
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