Dubai’s Emirates NBD Q2 profits surge 50%

Lender has sold part of its stake in developer Union Properties

Emirates NBD said its second-quarter net profit rose 50 percent, beating analysts' forecasts, as Dubai's largest lender benefited from an economic recovery in the emirate.

ENBD, 55.6-percent owned by state fund Investment Corp of Dubai, made a net profit of AED972m ($264.6m) in the three months to June 30, compared with AED647m in the same period last year, a statement from the bank said on Monday.

An average of five analysts polled by Reuters forecast a net profit of AED783.8m for the second quarter.

Shares in ENBD have risen 69.1 percent year-to-date as investor confidence that Dubai's economy is recovering, helped by a revival in real estate prices, has fed through into the banking sector.

ENBD booked impairments of AED997m in the second quarter of this year, marginally up on the AED954m recorded in the same three months of 2012.

The bank said it had sold a portion of its stake in Union Properties during the first half of the year, without elaborating on how much was sold nor for what price or to who. It had been the developer's largest shareholder.

ENBD has now repaid AED7.8bn of support from the United Arab Emirates government which it had received in the wake of the global financial crisis. It had already repaid AED3bn out of the AED12.6bn of total support it had received in April.

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