Emirates NBD profit surges 37%

Dubai: Emirates NBD announced a net profit of Dh1.19 billion for the first quarter of 2008 up, 37 per cent from Dh874 million during the same period last year.

Demand growth in corporate and retail loans, spurred by declining interest rates and a booming economy, helped both revenue and profit growth.

Total income for the first three months of 2008 was up by 49 per cent to Dh2.19 billion as total assets reached Dh277.5 billion at the close of the first quarter from Dh253.8 billion at the end of the fourth quarter last year.

Earnings per share at the Gulf's largest bank by assets increased 35 per cent relative to the same period last year to Dh0.27, while return on equity reached 25.5 per cent for the first three months of 2008.

Loans and advances grew 5.4 per cent to reach Dh175 billion as customer deposits grew eight per cent to Dh150 billion in the first three months of 2008.

"This is the first quarterly result for the bank after the completion of merger. The Bank continues to lead in the region through product innovation and offering superior customer service experience. The results confirm the merits of our growth strategies emphasising expansion and service delivery," said Ahmad Humaid Al Tayer, Chairman of Emirates NBD.

Costs rise

Costs arising from the integration of the two banks and inflation in the country saw overall the costs rising 48 per cent to Dh855 million over the same period last year.

"The first quarter of 2008 saw continued revenue growth in most of the businesses with increasing earning power from our core businesses. We continue to be cautiously optimistic about the year as the business faces challenges from rising costs and external challenges," said Rick Pudner, Emirates NBD Chief Executive Officer.

eib net profit soars 253%

Emirates Islamic Bank (EIB) recorded a net profit of Dh148.6 million, up 253 per cent compared to the same period last year. The total income in the first quarter of 2008 grew to Dh359.2 million from Dh189.5 million in the first quarter of 2007.

The bank's balance sheet including total assets, customer deposits and shareholder equity also recorded significant increases. Compared to the first quarter of last year, total assets reached Dh21.15 billion, reflecting a 68 per cent growth. Customer deposits grew to Dh18.15 billion, registering 68 per cent growth with total shareholder equity reaching Dh1.48 billion, recording an increase of 31 per cent.

- B.D.A.