Emirates NBD continues strong growth run in the first half of 2013 - IFN

Emirates NBD continues strong growth run in the first half of 2013

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UAE: Emirates NBD, which is owned by the Investment Corporation of Dubai, and currently Dubai’s largest bank by assets, saw a 40% increase in second quarter net profits to AED971.6 million (US$264.45 million) from the corresponding period last year. The bank, which earlier this year integrated Dubai Bank into its Islamic subsidiary, Emirates Islamic Bank, also saw encouraging growth in its Islamic banking arm to AED115 million (US$31.3 million) in net profits from a net loss of AED91 million (US$24.77 million) in the same period last year. Total income after profit distribution grew to AED701 million (US$190.8 million) from AED556 million (US$151.33 million) last year, charting a 26% growth, while financing receivables for the bank’s Islamic banking business saw a slight 2% hike to AED23.7 billion (US$6.45 billion) from AED23.3 billion (US$6.34 billion) at the end of 2012. Following the absorption of Dubai Bank into its Islamic banking arm, the CEO of Emirates NBD, Rick Pudner said in February this year that the bank will shift its focus to the retail segment, and gradually wean itself from overexposure to the real estate and property markets. Commenting on the bank’s second quarter results, he said: “During the first half of 2013, we have once again delivered a robust set of financial results with net profit for the period up by 40% compared to the same period in 2012. The growth momentum in our retail and Islamic franchises has evidently gained pace. During the period, we have also successfully completed the acquisition of BNP Paribas Egypt.” According to a statement by the bank, Emirates Islamic Bank will continue to implement its aggressive growth plans, which includes strengthening its corporate banking business through the introduction of new products and services. The bank has also been recently involved in several deals, including a two-part Shariah compliant financing facility by Al Baraka Turk, and the International Bank of Azerbaijan’s US$120.5 million syndicated Murabahah facility. This is in line with Pudner’s statement earlier this year on increased involvement by the bank in Islamic deals.