Emirates NBD said economic activity in 2019 to be underpinned by higher oil production as well as increased government spending
Emirates NBD reported a 15 percent increase in Q1 profit, boosted by increased income from loan growth, foreign exchange and derivatives.
Dubai’s largest lender made a net profit of $735 million (AED2.7bn) for the first quarter.
Income in the first three months of this year was also up by 15 percent, reaching $1.2bn (AED4.7bn).
The bank said its core fee income increased 15% on the back of higher income from forex and derivatives, as well as stable margins.
“Emirates NBD delivered a strong set of results with net profit advancing by 15% to reach AED 2.7 billion in the first quarter, underpinned by higher income on the back of loan growth, stable margins, and increased foreign exchange and derivative income,” said Shayne Nelson, group CEO, Emirates NBD.
"The bank’s balance sheet remains strong with an improvement in liquidity and capital ratios and a stable credit quality."
Surya Subramanian, group CFO added: “The operating performance for the first quarter of 2019 was pleasing as we delivered growth in both net interest income and fee income. Costs improved by 7% from the previous quarter due to a reduction in staff costs, lower professional fees and marketing expenses.”
Looking to the year ahead, Emirates NBD predicted increased economic activity, after a “softer” 2018.
“We expect economic activity in 2019 to be underpinned by higher oil production as well as increased government spending, following softer than expected growth in 2018. The UAE economy grew 1.7% last year, according to official statistics. The bank’s research team retain their growth forecast of 3.1% for the UAE in 2019,” Emirates NBD said.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.