Emirates NBD PJSC posted a 16 percent increase in third-quarter profit, topping analyst estimates, as the biggest bank in Dubai benefited from higher interest income.
Net income rose to 2.64 billion dirhams ($719 million) from 2.28 billion dirhams, the Dubai government-controlled bank said in a statement. The mean estimate of four analysts was for as a profit of 2.55 billion dirhams, according to data compiled by Bloomberg. Net interest income rose 18 percent to 3.31 billion dirhams.
“The operating performance for the third quarter of 2018 was satisfying as all business segments delivered a year-on-year increase in both operating income and contribution to group profit,” Group Chief Financial Officer Surya Subramanian said. “Margins continued to improve as rate rises flowed through to loan book which more than offset a rise in deposit costs.”
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“Any benefit from future rate rises may be limited as we have experienced some migration from current account and savings account to fixed deposits,” he said.
Net interest margin 2.87% vs 2.56% Cost to income ratio 32.9% vs 32.0% Total income 4.45 billion vs 3.97 billion Impairment allowances 353 million vs 431 million Total assets at 492.6 billion, up 5% from end 2017 Customer loans at 324.7 billion, up 7% from end 2017 Customer deposits at 341.2 billion, up 4% from end 2017 Impaired loan ratio at 5.8%, coverage ratio at 127.4% Liquidity coverage ratio at 196.5% Common equity tier 1 ratio at 16.6%; capital adequacy ratio at 21.3%
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