Dubai’s Emirates NBD beats profit view on higher interest income, loan growth

DUBAI: Emirates NBD, Dubai’s biggest bank by assets, beat estimates for first-quarter profit on Tuesday, helped by strong growth in loans and interest income.

UAE banks, among which Emirates NBD is one of the largest, have been buoyed by steady economic growth, rising demand for credit, and government-driven investment in non-oil sectors.

The lender’s net profit came in at 6.2 billion dirhams ($1.69 billion) for the three months ended March 31, compared with 6.7 billion dirhams in the year-ago quarter.

Analysts, on average, had expected a profit of around 5.1 billion dirhams, according to estimates compiled by LSEG.

Emirates NBD’s net interest income grew 14% to 8.5 billion dirhams in the first quarter, while non-funded income increased 5% to 3.4 billion dirhams.

Dubai’s Emirates NBD posts flat Q4 profit as investment offsets higher income

As Gulf states push ahead with diversification plans, funding for infrastructure, tourism, and industrial projects has flowed through local lenders, lifting loan volumes and boosting profitability.

The banks have also benefited from stable liquidity conditions, a resilient real estate market, and growing interest in wealth management and digital services.

The lender, majority-owned by Dubai’s government, said, total gross loans increased 11% in the quarter and its total assets rose 14% to 1.03 trillion dirhams.