ENBD Q2 Profit Drops 13%

Dubai-based Emirates NBD made a net profit of Dhs647 million in the second quarter of the year.

Emirates NBD, Dubai’s largest bank by market value, on Monday said its second-quarter net profit fell 13 per cent, partly on higher costs linked to its Dubai Bank merger, although the figure beat analysts’ forecasts.

The lender, 55.6-per cent held by state-owned Investment Corporation of Dubai, made a net profit of Dhs647 million ($176.15 million) in the three months to June 30, a statement from the bank said, compared to Dhs744 million in the same period last year.

Analysts forecast average profit of Dhs632.2 million, according to a Reuters poll.

Profit for the first six months of 2012 dropped 40 per cent over the same period last year to Dhs1.3 billion, ENBD said in the statement. The 2011 figure of Dhs2.2 billion was boosted by a one-off gain from the sale of a stake in payment solutions provider Network International.

Provisioning in the second quarter dropped three per cent year-on-year to Dhs954 million versus Dhs981 million in the same three-month period last year.