Dubai banks’ earnings up by 2.7%

20/07/2017 06:14 AST

The net profits of the banks listed in Dubai grew by 2.7 per cent to Dhs7.47 billion in the first half of this year, up from Dhs7.28 billion in the corresponding period last year.

Emirates NBD topped the list of the most profitable banks with net profits of Dhs3.9 billion (including the profits of Emirates Islamic Bank) in the first 6 months of this year, while Dubai Islamic Bank recorded the highest growth rate at around 7 per cent.

The assets of Dubai banks grew by 8.5 per cent to around Dhs843 billion in the first half of this year, up from Dhs776.8 billion in the first half of 2016.

Commercial Bank of Dubai topped the list of Dubai banks with the highest growth of total assets at 10.6 per cent to Dhs67.89 billion in the first half of this year, compared with Dhs61.36 billion in the first half of 2016.

Emirates NBD is the largest bank in terms of assets as its total assets reached Dhs456.2 billion by the end of the first half of this year.

Emirates NBD recorded half-year net profits of Dhs3.9 billion, up 5 percent on higher net interest income, lower expenses and lower provisions. Net interest income improved 2 percent year-on-year due to loan growth and helped by a recent improvement in margins.

Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased. The operating performance was also supported by a control on expenses and lower provisions. The Bank’s balance sheet continues to strengthen with further improvements in credit quality and capital, coupled with solid liquidity ratios.

The Gulf Today