Emirates Bank, NBD profits surge

EBI and NBD see net income rise over 40% in final quarter before they merge to create Gulf's largest lender.
Emirates Bank, NBD profits surge
By Dylan Bowman and Reuters
Tue 31 Jul 2007 03:32 PM

Emirates Bank International (EBI) and National Bank of Dubai (NBD) on Tuesday both saw net profit rise over 40% in the penultimate quarter before the government combines them to create the Gulf’s largest lender by assets.

EBI stemmed a year-long slide in profit to post net income of AED626 million ($170 million) in the second quarter, up 70% year-on-year and the first increase in the bank’s earnings since the first quarter of 2006.

Analysts' forecasts for the bank's second-quarter profit ranged from AED433.90 million to AED534 million.

NBD, the smaller of the two, reported net profit of AED349.1 million ($95.07 million), up 41.2% from the year-earlier period.

The increase is NBD’s third consecutive rise in quarterly earnings.

Analysts’ forecasts for NBD's second-quarter profit ranged from AED292.40 million and AED431 million.

If shareholders agree, the two banks will be combined into a government-controlled entity, Emirates NBD, on October 14, under the terms of $11.3 billion deal announced this month.

EBI will hold its extraordinary general meeting (EGM) on September 5, while NBD’s will take place on September 6.

Shareholders of both banks have from August 1 to September 17 to swap their shares for stock in the new entity.

Each EBI share is valued at AED9.30, equivalent to one share of Emirates NBD, and each NBD share is valued at AED8.84, which can be exchanged for 0.95 of a share in Emirates NBD.

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