JM Hot News - шаблон joomla Окна

Hits Dh5b on higher income.

Emirates NBD on Tuesday said its nine-month net profit climbed 27 per cent to Dh5 billion on higher income and lower provisions for bad loans.

The largest lender bank in the UAE by total income said operating performance was also helped by an increase in net interest income, a modest increase in costs and a lower impairment charge.

The bank said its third-quarter net profit rose seven per cent to Dh1.67 billion compared to Dh1.56 billion in the same period last year. An average of four analysts polled by Reuters forecast the bank to make a net profit of Dh1.60 billion for the July-September 2015 quarter.

The bank's year-on-year deposits increased eight per cent at Dh269.3 billion on September 30 compared to Dh249.7 billion at the same point last year. It's total assets climbed by 10 per cent at Dh390.4 billion on September 30 in contrast to Dh352.9 billion at the same point in 2014.

In a statement, the bank said total income during the January-September 2015 period rose by two per cent to Dh11.2 billion, while net interest income grew by eight per cent to Dh7.6 billion due to growth in retail assets and a lower cost of funds.

The bank said non-interest income declined by seven per cent to Dh3.6 billion due to lower gains from the sale of properties and investments. However, year-on-year core fee income improved by 14 per cent due to growth in foreign exchange and derivative income, growing credit card volumes and higher asset management fees.

"We delivered another milestone with the integration of the Egypt business onto Emirates NBD's systems platform. The group is well-positioned to continue to utilise our strong franchise and balance sheet to deal with challenges and take advantage of opportunities within the region," said Hesham Abdulla Al Qassim, vice-chairman of Emirates NBD.

The bank's provisions for bad loans dropped to Dh822 million in July-September 2015 quarter compared to Dh1.2 billion in the same period last year. Bad loans dropped to Dh20.3 billion at September 30, down from Dh20.6 billion at the end of June 30. Loans and advances stood at Dh261.6 billion at the end of September, up from Dh247.7 billion at the same point last year.

"Our strong balance sheet will allow us to take advantage of any growth opportunities in our preferred markets. We are confident that, going forward, our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves," group chief executive officer Shayne Nelson said.

Group chief financial officer Surya Subramanian said the bank's operating performance for the first nine months of 2015 is solid, as demonstrated by the growth in both the net interest income and profit.

"We took advantage of favourable market conditions to prudently raise Dh9.5 billion of term-funding in the first nine months of 2015. This decision to 'front load' our term-funding requirements in the early part of 2015 is paying dividend even as we can comfortably meet maturing liabilities and wait for more favourable conditions to re-enter the capital markets," Subramanian said.

In a separate e-mailed statement to Reuters, a spokesman for the bank said it had no need to access capital markets for the foreseeable future. "We continuously evaluate opportunities to raise term funding, but would only do so if and when the time is right for investors and for the bank," the spokesman added.