Emirates NBD’s profit surges 38% in third quarter

Emirates NBD, Dubai’s largest lender by assets, reported a 38% increase in third-quarter net profit year on year, thanks in part to loan growth and consistent low-cost funding that allowed the bank to benefit from increasing interest rates.

According to LSEG statistics, profit for the quarter was AED 5.2 billion ($1.42 billion), which was in line with experts’ median forecast of AED 5.18 billion.

The bank’s net interest revenue increased by 29% to AED 7.8 billion, while non-funded income increased by 49% to AED 3.6 billion.

Total assets were up 16% year on year to AED 836 billion at the end of September, gross loans were up 8% to AED 494 billion, and deposits were up 19% to AED 570 billion.

Its non-performing loan ratio fell from 5.8% a year ago to 5.5%. Impairment allowances were cut by 54% “as credit quality improved, underscoring the group’s careful approach to credit provisions,” according to the company’s statement.

“Lending to small and medium-sized firms in the UAE has increased by 34%, “supporting this crucial sector and the basis of the  economy,” according to Hesham Abdulla Al Qassim, vice chairman and managing director.