Emirates NBD Q2 net up 87%

Emirates NBD, Dubai's largest bank by market value, on Monday said its second-quarter net profit surged 87 percent helped by a drop in loan loss provisions and improved income from investment securities. 

The lender, which reshuffled its board last month, made a net profit of 744 million dirhams ($202.6 million)for the three month period ending June 30, compared with 398 million dirhams in the prior-year period. 

Four analysts polled by Reuters had estimated an average profit of 746.3 million dirhams for the second quarter.   

Profit for the first six months climbed 46.7 percent over the same period last year to 2.2 billion dirhams, Emirates NBD said in a bourse statement. 

Impairment provisions fell 18 percent to 981 million dirhams during the quarter, helping aid profit growth. Total provisions stood at 3.8 billion dirhams for the six-months ended on June 30. 

Non-interest income climbed by 43 percent in the second-quarter due to improved income from investment securities, the company said, adding that trading business was impacted during the period due to political unrest in the region and debt concerns in the euro zone. 

Loans fell 2  percent in the first half, signalling lending activity remains muted, while deposits were stable from December at 200.5 billion dirhams, the statement said. 

In June, Emirates NBD reshuffled its board of directors, resulting in the appointment of Sheikh Ahmed bin Saeed Al Maktoum, as chairman. 

The move could signal potential changes to come in Dubai's banking sector, analysts said.  

Emirates NBD shares have risen 52 percent this year outperforming the benchmark which is down 6.7 percent year-to-date.