Emirates NBD profits fall 40%

DUBAI – Emirates NBD, the UAE’s largest bank by assets, posted a 40 percent drop in its first-half net profits for the year 2012.

"Net profit for the group was AED1.289 billion for H1 2012, 40 percent below the profit posted in H1 2011 of AED2.157 billion as the comparative period was aided by a AED1.813 billion gain on the stake sale of Network International," the banks said in a statement posted on Dubai Financial Market website.

Excluding last year’s non-recurring gain on subsidiaries, however, the bank’s half-yearly profits surged a whopping 274 percent, it said. The bank has recorded a "H1 2012 net profit of AED1.3 billion, up 274 percent compared with AED0.3 billion in H1 2011 after excluding the AEDh1.8 billion non-recurring gain on subsidiaries," it added.

Its customer loans improved 2 percent and customer deposits increased 8 percent during H1 2012, as compared with year-end 2011, it said. Emirates NBD’s CEO Rick Pudner attributed this growth to the bank’s focus on its "strategic priorities", which he said was bearing fruit.

"During the first half of 2012, we have delivered a robust set of financial results with pre-impairment operating profits for the period up 5 percent, despite a continued challenging external environment. In addition, the progress we have made toward our strategic priorities is now bearing fruit as growth momentum in our retail and Islamic banking franchises is evidently gathering pace.” – SG