Emirates NBD posts 3% rise in Q3 profit

Emirates NBD, the largest bank in the UAE by assets, on Monday posted a 3 percent rise in Q3 profit.

Net profit in the three months ended September 30 rose 3 percent to AED1.1bn ($285.9m) from the same period a year ago, beating analyst expectations, but the bank said it retains a cautious stance amid continued market uncertainty.

“The third quarter of 2009 has witnessed continued stabilisation of local and international economies and sentiment and confidence,” said chairman Ahmed Humaid Al Tayer.

“However, we continue to move forward in a prudent manner.”

Credit impairments soared to AED699m from AED91m a year ago, but declined from the AED1.1bn booked in the previous quarter.

The ratio of nonperforming loans (NPL) rose to 1.88 percent from 1.56 percent in Q2, which was in line with the bank’s expectations.

Emirates NBD expects NPLs to reach 2.3 percent by the end of the year and to peak at 2.5 percent by the middle of next year.

The bank’s loan to deposit ratio fell to 118 percent from 127 at the end of Q2.

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