Emirates NBD reports 13% fall in Q2 profit

Group profit for period ending June 30 down to US$176.4m, says UAE's biggest lender by assets
Emirates NBD reports 13% fall in Q2 profit
Emirates NBD, the UAEs largest bank by assets, reported a 13 percent decline in second quarter profit.
By Massoud A. Derhally
Mon 23 Jul 2012 11:45 AM

Emirates NBD, the UAE's largest bank by assets, reported a 13 percent decline in second quarter profit.

Group profit for the period ending June 30 fell to AED647.4m (US$176.4m) from AED744.5m in the same period a year ago, the bank said in a regulatory filing to the Dubai Financial Market.

"During the first half of 2012, the UAE economy has continued to display resilience to global uncertainty, underpinned by a continued increase in oil output and strength in the trade, logistics, tourism and retail sales sectors," the bank said in the statement.

"Nevertheless, the external environment remains challenging and the bank maintains its cautious outlook. However, Emirates NBD’s capitalisation, liquidity and operating profitability remain extremely strong offering both resilience and flexibility for the future."

Profit for the first six months of 2012 dropped 40 percent compared to the same period last year to AED1.29bn, from AED2.15bn, the lender said.

Provisions for the second quarter declined 3 percent to AED954.5m from AED 981m in the same period a year earlier, the bank added.

Loans grew by 2 percent from the end of last year to AED208.2bn, while deposits increased 8 percent from the end of 2011 to AED 208.4bn. 

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