Dubai: Emirates NBD, the UAE's biggest lender by assets on Monday reported a net profit of Dh744 million, up 85 per cent compared to Dh403 million reported in the second quarter of 2010.
The bank's net profit for the first half of 2011 was up 43 per cent at 2.2 billion. Net interest income for the second quarter of 2011 was up 5 per cent compared to the same quarter in 2010 resulting from improved net interest margin while the non-interest income grew 43 per cent to Dh843 milllion compared with Dh591 million reported in the second quarter of 2010.
"These strong results for the first half of 2011 highlight the strength and success of Emirates NBD. We will move forward to achieve the ambitious vision of Dubai as a financial, commercial and international tourism hub, where Emirates NBD holds a leading position," said Shaikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD said in a statement.
The bank said in a statement to Dubai Financial Market that the first half of 2011 witnessed improving trends in credit quality, as the rate of new impaired loan formation and required specific provisioning continued to decline.
The bank's impaired loans ratio improved by 1.1 per cent during the period resulting primarily from the de-recognition of a previously impaired corporate account due to the finalisation of the facility's restructuring on commercial terms. While the impairment charge in the first half of 2011 increased to Dh2.35 billion compared with Dh1.74 billion in the first half of 2010.
The bank had made an addition of Dh1.60 billion to portfolio impairment allowances during the first half of 2011,to cover future contingencies.This takes Emirates NBD's total portfolio impairment allowances to Dh3.8 billion or 2.4 per cent of unclassified credit risk weighted assets, in excess of the UAE Central Bank requirement of 1.5 per by over Dh1.4 billion.
"During the first half of 2011 we have delivered a strong set of financial results with net profits for the period up 43 per cent compared with the first half of 2010.
"This not only reflects the progress made by the bank in addressing the challenges posed during the last few years but also demonstrates our ability to take advantage of improved economic conditions and to deliver on a clear strategic course," said Rick Pudner Emirates NBD's Chief Executive Officer.