Emirates NBD PJSC’s net income for the second quarter beat estimates as higher margins, an improved deposit mix and loan recoveries raised revenue.
Dubai’s biggest lender said profit jumped 78% to 6.2 billion dirhams ($1.69 billion), exceeding the median of two analyst forecasts of 5.77 billion dirhams, according to a statement on Thursday.
Banks in the United Arab Emirates are seeing asset quality improvement and strong growth as the country attracts global investors seeking to park their wealth. Last week, First Abu Dhabi Bank PJSC, the country’s largest lender, reported a surge in earnings that also beat estimates as it benefited from higher rates and improved margins.
Emirates NBD said its balance sheet surpassed 800 billion dirhams for the first time as it added 53 billion dirhams of deposits during the first half and lending grew 5%. The bank revised guidance on loan growth upwards to high-single digits.
The banking group’s “success in growing an inexpensive and diversified funding base has positioned the bank to continue benefiting from higher interest rates,” Group Chief Financial Officer Patrick Sullivan said in the statement.
