Dubai’s Emirates NBD’s third-quarter profit rises 51% | Tech Rasta

DUBAI, Oct 27 (Reuters) – Emirates NBD ( ENBD.DU ), Dubai’s biggest bank, reported on Thursday a 51% rise in net profit in the third quarter on higher income, including interest income and from transactions.

Emirates NBD made a net profit of 3.8 billion dirhams ($1.03 billion) in the quarter from 2.5 billion dirhams in the third quarter of 2021.

EFG Hermes estimated a net profit of 3.14 billion dirhams.

In its corporate and banking institutions division, net profit increased by 1% “on lower impairment allowances and higher fee income as increased capital market activity offset lower capital market rates.”

Emirates NBD has won first place in all of Dubai’s previous government-led offerings this year, raising its fees and reviving a long-stagnant business.

Net interest income rose 37% on an “improved loan and deposit mix” due to higher interest “fed to margins” and “new loan growth,” ENBD said.

The real interest rate rose to 3.57% in the quarter from 2.65% a year ago and 3.09% in the second quarter.

Total assets rose 1% from the previous quarter to 721 billion dirhams. Its non-performing loan ratio fell to 5.8% from 6.1% in the previous quarter. The payout ratio decreased to 152.2% from 154.8% in the second quarter.

ENBD, the UAE’s second-largest lender behind First Abu Dhabi Bank, said its loss on net financial position at Turkish subsidiary DenizBank was 2.4 billion dirhams in the first nine months of 2022.

Turkey and Egypt, where ENBD also has a unit, “have seen significant increases in service inflows and tourist revenues to offset some of the impact of rising energy costs on the current account deficit,” ENBD said.

“The outlook for the Middle East remains positive despite the global downturn. Higher oil prices in 2022 have pushed the GCC budget into surplus and strengthened the balance sheet,” Emirates NBD said in a statement.

It revised its growth forecast for the UAE this year to 7% and for 2023 revised it to 3.9%.

Rates are rising faster than ENBD previously expected, it said, as inflation remains at multi-decade highs in several countries.

($1 = 3.6727 UAE dirham)

Reporting by Yousef Saba; Prepared by Jacqueline Wong

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