Dubai: Leading Dubai banks such as Emirates NBD (ENBD), Emirates Islamic (EI) and Dubai Islamic Bank (DIB) posted their first-half results on Wednesday, reporting strong operating performances supported by declines in costs, lower provisions and improved margins.
Emirates NBD reported a net profit of Dh3.9 billion for the first half of 2017, up 5 per cent year-on-year, largely driven by higher net interest income, lower expenses and lower provisions.
Net interest income improved 2 per cent year on year due to loan growth and was helped by a recent improvement in margins. Net interest margins have improved since the start of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased.
“Despite some uncertain times, Emirates NBD has delivered a record set of half-year results. During 2017 we have seen margins widen 20 bps [basis points] as recent rate rises flowed through to loan pricing and funding costs improved as regional liquidity conditions eased,” said Shayne Nelson, group chief executive officer of Emirates NBD.
Emirates Islamic, an Islamic bank belonging to the ENBD Group, posted a net profit of Dh387 million for the first half of 2017, compared to Dh137 million reported in the same period last year.
Dubai Islamic Bank (DIB) reported a group net profit of Dh2.14 billion in the first half of 2017, up 7 per cent from the Dh2 billion reported in the same period last year.
In the first half of the year, operating expenses remained nearly flat at Dh1.16 billion, compared to Dh1.15 billion for the same period in 2016.
Gross cost of credit risk fell to 55 basis points (bps), compared to 75 bps for the same period in 2016.
The bank’s asset quality remained strong during the first half of 2017, with the non-performing assets (NPA) ratio continuing its downward trajectory and improving to 3.6 per cent, compared to the 3.9 per cent seen at the end of 2016.
