Emirates NBD reports 45% profit growth in 2nd Quarter 2008

Dubai: Emirates NBD, the Middle East's largest banking group by assets, announced the bank's net profits for the second quarter of 2008 increased by 45 per cent to Dh1.473 billion.

The total income of the bank reached Dh2.495 billion, an increase of 48 per cent on second quarter 2007 proforma results while total assets reached Dh 286 billion, an increase of 12.4 per cent from year end 2007.

"Our second quarter performance demonstrates the value that the merger is delivering to our shareholders, customers and staff as we realize the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to create a regional banking champion.'' said Ahmed Humaid Al Tayer, Chairman of Emirates NBD

Operating costs for Emirates NBD reached Dh931 million in the second quarter of 2008, a year-on-year increase of 45 per cent. The increase in costs was driven by investments in staffing and governance, capabilities, increasing distribution network and infrastructure development.

The Cost-Income ratio declined to 37.4 per cent in First Half of 2008 compared to 38.8 per cent in Second Half of 2007. This was the result of continued focus on costs management, productivity enhancement and realization of synergies from the merger.