Emirates NBD sees profits rise 5% in Q1 2009

Emirates NBD saw net profits rise by five percent in the first quarter of the year, compared with the previous quarter, it revealed in a statement on Wednesday.

The Dubai-based bank's total income rose by 20 percent year-on-year to AED2.6bn, with growth in both customer loans and deposits, which rose three percent and five percent respectively.

Its capital adequacy also received a boost from AED9.3bn to AED12.6bn – up from 11.4 percent to 16.2 percent, as a result of converting Ministry of Finance deposits to Tier 2 Capital, the bank's statement said.

“This is a strong set of quarterly results that reflect healthy performance within a challenging environment,” said chairman Ahmed Humaid Al Tayer, who predicted last week that most UAE banks would post positive profits for the first quarter of the year.  

“We have seen robust revenue and profit growth this quarter driven primarily by the broad-based strength of our businesses, as well as cost efficiencies resulting from ongoing rationalisation and the integration process,” added CEO Rick Pudner.

Costs in Q1 2009 amounted to AED 911m, an increase of 11 percent over Q1 2008, and 10 percent more than Q4 2008 levels.

However, the cost to income ratio decreased to 34.9 percent in Q1 2009, compared with 37.6 percent in Q1 2008, due to proactive cost management and improved integration of services, the bank said.  

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