Emirates NBD posted a 16 percent increase in third-quarter profit, topping analyst estimates, as the biggest bank in Dubai benefited from higher interest income.
Net income rose to 2.64 billion dirhams ($719 million) from 2.28 billion dirhams, Emirates NBD said in a statement.
The mean estimate of four analysts was for as a profit of 2.55 billion dirhams, according to data compiled by Bloomberg. Net interest income rose 18 percent to 3.31 billion dirhams.
“The operating performance for the third quarter of 2018 was satisfying as all business segments delivered a year-on-year increase in both operating income and contribution to group profit," group chief financial officer Surya Subramanian said.
"Margins continued to improve as rate rises flowed through to loan book which more than offset a rise in deposit costs.
"Any benefit from future rate rises may be limited as we have experienced some migration from current account and savings account to fixed deposits," he added.
The shares advanced 2.2 percent at 10:29 a.m. in Dubai, taking their gains this year to 12 percent. That compares with decline of 19 percent for the benchmark Dubai Financial Market General Index for the year.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.
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