Emirates NBD posted a 17 percent increase in net profit in the fourth quarter of 2017, the bank announced in a statement on Tuesday.
According to the statement, net profits rose from AED 1.86 billion ($506.3 million) in the fourth quarter of 2016 to AED 2.18 billion ($593.5 million) in the same period last year.
For the entire fiscal year, the bank recorded a total net profit of AED 8.35 billion ($2.27 billion), a 15 percent year-on-year increase, while net interest income rose by 7 percent due to loan growth and the positive impact of recent rate rises.
Group CEO Shayne Nelson said said the record yearly figures were supported by higher income, a control on expenses and a lower cost of risk.
Based on the results, the board of Dubai's largest bank has recommended a 2017 dividend of 40 fils per share.
“Emirates NBD delivered an excellent performance in 2017, achieving a record annual net profit,” said Hesham Abdulla Al Qassim, Emirates NBD vice chairman and managing director.
Al Qassim added that, following the opening of the bank’s first branch in India in 2017, it will continue to expand internationally, with additional branch openings planned in Egypt and Saudi Arabia, as well as a representational office in Turkey.
“We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that present themselves,” he added.
The Emirates NBD statement added that the bank expects the UAE’s growth rate to accelerate to 3.4 percent in 2018 from an estimated 2 percent in 2017.
“Non-oil sector growth will be underpinned by investment in infrastructure as the country prepares for Expo 2020, with the public sector driving this investment,” the statement notes, adding that household consumption will likely be constrained against a backdrop of modest job and wage growth, higher taxes and increased fuel costs.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.