Emirates NBD, the largest bank in Dubai by assets, exceeded profit expectations for the first quarter on Tuesday, driven by robust loan growth and interest income. The bank also revealed that its total assets had surpassed the 1 trillion dirham mark.
Banks in the UAE have benefited from steady economic expansion, increasing demand for credit, and government-led investments in non-oil sectors.
Shares of Emirates NBD rose by 1% during morning trading following a 14% rise in total assets to 1.03 trillion dirhams (£280.4 billion) in the first quarter, with deposits also showing an increase.
Net profit for the three months ending March 31 amounted to 6.2 billion dirhams, compared to 6.7 billion dirhams a year earlier and the average analyst forecast of around 5.1 billion dirhams, according to estimates compiled by LSEG.
Net interest income climbed 14% to 8.5 billion dirhams, while non-interest income grew by 5% to 3.4 billion dirhams.
As Gulf nations continue their diversification efforts, funding for infrastructure, tourism, and industrial projects has been channelled through local banks, resulting in increased loan volumes and higher profitability.
Dubai’s status as a capital hub in the Gulf, supported by its business-friendly environment and light regulatory framework, has further enabled its banks to strengthen relationships with high-net-worth individuals and regional corporations.
Net fee and commission income also rose by 14%, driven by growth in its retail card services and increased earnings from investment banking, trade finance, and wealth management.
At Monday’s market close, shares of Emirates NBD had fallen by approximately 9% this year, in line with a broader sell-off in global banking stocks, giving the bank a market value of around $33.45 billion, according to LSEG data.
