Emirates NBD (ENBD), Dubai’s largest bank by market value, announced that net profit during the first quarter of the year reached Dhs641 million, down 55 per cent from Dhs1.41 billion it made during the same period last year.
“The comparative quarter was aided by a Dhs1,835 million gain on the stake sale of Network International,” ENBD said in a statement.
“Relative to Q4 2011, however, net profit more than tripled due to the improved operating performance witnessed during the current quarter and the absence of further impairments on associates and investment properties,” the bank said.
Total income during the period hit Dhs2.7 billion, up 19 per cent year-on-year, while costs also increased 16.5 per cent year-on-year to Dhs942 million.
“Whilst uncertainties and challenges remain in the global economic environment, we remain confident about the strength and capabilities of Emirates NBD to capitalise on value-adding opportunities for our shareholders,” ENBD’s CEO Rick Pudner said in the statement.
“The bank has continued to optimise its balance sheet during the quarter through its focus on growth in stable low-cost deposits and the issuance of more than Dhs7 billion in medium term liabilities,” said Surya Subramanian, the bank’s CFO.
The lender made a net profit of Dhs2.5 billion last year, up six per cent from 2010, and announced that it will pay a dividend of 20 fils per share.