Dubai banks report strong results
Better margins and lower provisions lift performance
Leading Dubai banks reported strong first quarter results characterised by improving interest margins, decline provisions and improved cost of risk.
Emirates NBD reported Dh2.4 billion net profits for the first quarter of 2018, up 27 per cent year on year and 10 per cent compared to the previous quarter. The solid operating performance was underpinned by higher net interest income on the back of loan growth and improved margins, and a lower cost of risk. Net interest margin improved by 17 basis points to 2.68 per cent in the first quarter of 2018.
Net interest income improved 7 per cent over the previous quarter due to loan growth coupled with an improvement in margins. “The Group’s balance sheet remains strong with solid liquidity and capital ratios and a further strengthening in credit quality,” said Group Chief Executive Officer, Shayne Nelson.
Emirates Islamic, an Islamic bank belonging to Emirates NBD Group reported a net profit of Dh209 million, for the first quarter of 2018, up 6 per cent year on year, supported by growth in core income, efficient cost management and an improved cost of risk. The bank’s balance sheet remains strong with improvements in credit quality and liquidity. “An enhanced collection drive and reduced cost of risk resulted in 24 per cent lower impairments as compared to the same period last year,” said Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic.
Strong note
Dubai Islamic Bank (DIB) Group reported Dh1.21 billion first quarter net profit, up 16 per cent compared to Dh1 billion in the same period last year. Profitability of the bank improved further in the quarter with total income increasing to Dh2.69 billion compared to Dh2.37 billion for the same period in 2017.
“The year has once again started on a strong note ... A key component of the success witnessed by the bank has been the shareholders’ support over the years, particularly in building capacity when needed to remain on our growth path,” said Dubai Islamic Bank Group Chief Executive Officer, Dr Adnan Chilwan.