Dubai: Emirates NBD, the largest bank in the Gulf in terms of assets reported a net profit of Dh1.11 billion in the first quarter of 2010, 12 per cent down from Dh1.239 billion the same period last year.
The bank’s first-quarter results beats analysts' average net profit forecast of Dh617 million for the period. The results were an improvement on the fourth quarter, when profit slumped to Dh178 million.
The bank booked Dh555 million in impairment allowances in the first quarter, compared to Dh462 million in the same quarter in 2009.
The bank said the first quarter saw "early signs of stability, increased economic activity and improved consumer sentiment and business confidence in the UAE."
Total assets up were 3 per cent Dh289.8 billion at the close of the first quarter compared to Dh281.6 billion at the end of 2009.
Customer loans were at Dh 211.9 billion, down 1 per cent from Dh 214.6 billion at the end of 2009.
“Emirates NBD’s continued robust performance during the first quarter of 2010 highlights the resilience and strength of the bank and our historically conservative and prudent approach. Emirates NBD’s core business remains strong and the successful completion of the merger at the end of 2009 positions the bank to continue to realise more success and provides the ability to capitalise on value-adding opportunities for our shareholders,” said Ahmed Humaid Al Tayer, Chairman of Emirates NBD.
On the liability side Customer deposits were up 6 per cent at Dh191.3 billion in the first quarter of this year from Dh181.2 billion at end of last year. While the return on average shareholders’ equity of 19.6 per cent again st 25.7 per cent in the first quarter of last year, the cost to income ratio declined to 33.9 per cent from 34.9 per cent in the first quarter of last year.
“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. At the same time, we have continued to invest in selected platforms for growth such as our Private Banking business and Abu Dhabi expansion and are well positioned to capitalise on expected improvements in economic activity,” said Rick Pudner, Emirates NBD’s Chief Executive Officer.
