Emirates NBD profit up 74%

Dubai's largest bank Emirates NBD posted a 74 per cent rise in fourth-quarter net profit on Monday.

The first bank in the UAE to announce its earnings this season made a net profit of Dh2.13 billion ($579.9 million) in the three months to December 31, compared with Dh1.23bn in the same period of 2014, Emirates NBD said in a media statement.

“During the year, and for the first time in the bank’s history, total assets crossed the $100 billion-mark, total income exceeded Dh15 billion and net profit surpassed Dh7 billion, further reinforcing Emirates NBD’s position of leadership in the region,” said Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD.

“I am particularly pleased that Emirates NBD continued to achieve growth in revenue and net profit amid a challenging environment. As a leading bank in the region, we are well placed to take advantage of future growth opportunities in Dubai, the UAE and the Gulf region. In light of the strong performance by the bank, we are proposing to increase the cash dividend to 40 fils per share,” he said.

Net profit for the year was up 39 per cent to Dh7.1bn, and the bank attributed the “strong operating performance” to income growth, a modest increase in costs and a lower impairment charge.

The bank, 55.6-per cent owned by state fund Investment Corp of Dubai, said that the board was recommending an increase in the 2015 dividend to 40 fils from 35 fils per share.

Analysts at Beltone Financial and HSBC forecast the bank would make a fourth-quarter net profit of Dh1.31bn and Dh1.71bn, respectively.

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