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Wed 19 Jul 2017 11:06 AM

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Dubai's largest bank posts 6% rise in Q2 profit

Emirates NBD says Dubai’s GDP is likely to grow further based on increased investment in infrastructure and a focus on non-oil activity

Dubai's largest bank posts 6% rise in Q2 profit

Emirates NBD reported a 6 percent rise in its second quarter net profit on Wednesday.

Dubai’s largest lender made a net profit of $550 million (AED2.2bn) in the three months to June 30, the bank announced this morning, up from the AED1.91bn it announced in the same period in 2016.

Group CEO Shayne Nelson said despite some uncertain times, the group’s balance sheet continued to strengthen with improved capital and credit quality ratios, while liquidity ratios were comfortably maintained.

He said the bank will continue to invest in its digital transformation programme.

“Last year we announced a major investment in our digital platform and we are pleased to unveil the next revamp of our award winning online portal which includes FaceBanking that will empower customers to talk to an advisor over a video call at a time and place of their choosing. We plan to continue our digital transformation programme with a planned investment of AED 1 billion ($272m) over the next three years,” Nelson said.

The bank revised its 2017 UAE GDP growth forecast down to 2%, from 3.4% previously, on the back of lower oil output, following OPEC’s decision to extend production cuts into Q1 2018.

“However, Dubai’s growth is likely to exceed this on the back of increased investment in infrastructure and a focus on non-oil activity,” the bank said.

"Anticipation of a 5% VAT to be introduced in early 2018 may boost spending in the second half of 2017, as consumers bring forward purchases that otherwise would be made in 2018

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