Dubai, October 17, 2024 — Emirates NBD, Dubai’s largest bank by assets, announced flat net profit for the third quarter of 2024, as an increase in net interest income was offset by higher impairment charges and investments aimed at driving future growth.
For the July-to-September period, the bank posted a net profit of 5.2 billion dirhams ($1.42 billion), matching the profit reported for the same period last year. The figure fell short of analysts’ expectations, with the consensus estimate of 6 billion dirhams, according to data from LSEG.
Net interest income for the quarter rose by 8% to 8.5 billion dirhams, driven by favorable interest rate conditions. However, non-interest income saw a decline of 15%, coming in at 3 billion dirhams.
Despite the flat quarterly profit, Emirates NBD continued to show strong overall growth. The bank’s total assets surged 14% year-on-year to 931 billion dirhams. Gross loans increased by 6% to 508 billion dirhams, while customer deposits rose by 13% to 624 billion dirhams.
On a nine-month basis, the bank’s non-performing loan ratio improved to 3.9%, down from 4.6% in the previous year, supported by robust recoveries, writebacks, write-offs, and repayments.
Emirates NBD had previously reported a 65% jump in profit for the full year 2023, demonstrating its resilience in a challenging economic environment.
As the majority government-owned bank continues its focus on strategic investments, it aims to strengthen its position in the competitive banking sector while enhancing long-term profitability.
