Emirates NBD posted nearly AED 2.4 billion ($653m) in net profit in Q1 2018, a 27 percent increase from the same period last year, the company announced on Wednesday.
The bank also reported a total income of AED 4.1 billion, a 13-percent year-on-year increase from 2017. The bank credits loan growth and rate rises for the increase.
"The operating performance for the first quarter of 2018 was pleasing as we delivered a record quarterly net profit supported by growth in our core business," said group chief financial officer Surya Subramanian.
"Margins widened 17 bps during the quarter as rate rises flowed through to the loan book and funding costs remained stable due to healthy liquidity conditions."
The bank was also helped by a 20 percent increase in net interest income, from AED 2.48 billion in Q1 2017 to AED 2.98 billion in the Q1 2018, as well as by a 5 percent increase in loan growth.
Additionally, impairment charges were found to have declined by 31 percent year-on-year as the net cost of risk improved, to AED 440 billion in Q1 2018.
“The group’s balance sheet remain strong with solid liquidity and capital rations and a further strengthening in credit quality,” said group CEO Shayne Nelson. “We are well positioned to utilise our strong franchise, digital capabilities and financial strength to take advantage of growth opportunities within the region.”
Earlier this week, Emirates NBD announced that it has expanded operations in Saudi Arabia with the inauguration of its first branch in Jeddah and plans for two further branches in Khobar and Riyadh.For all the latest business 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.
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