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Emirates NBD Q1 profit beats expectations

The result beats analysts’ average net profit forecast of Dh617 million for the period, the bank added in a statement.

The bank said its total income for the quarter declined by two per cent to Dh2.56 billion compared to Dh2.61 billion last year and by one per cent compared to Dh2.56 billion in the fourth quarter of 2009.

Operating profit before impairment allowances hit Dh1.7 billion, registering a four per cent growth over fourth quarter last year. Earnings per share fell 12 per cent to Dh0.20 compared to 0.23 last year.

The bank’s total assets registered a three per cent rise to hit Dh289.8 billion compared to Dh281.6 billion at the end of 2009. Total deposits rose 5.6 per cent during the quarter, while lending slowed down 1.2 per cent.

The Dubai-based bank said the first quarter saw “early signs of stability, increased economic activity and improved consumer sentiment and business confidence in the UAE.”

The bank booked Dh555 million in impairment allowances in the first-quarter, compared with Dh462 million in the same quarter in 2009.

“Emirates NBD’s continued robust performance during the first quarter of 2010 highlights the resilience and strength of the bank and our historically conservative and prudent approach,” said Ahmed Humaid Al Tayer, Chairman of Emirates NBD.

The bank’s customer loans stood at Dh211.9 billion, down one per cent from Dh214.6 billion at the end of 2009.

However, the bank said its customer deposits rose 6 per cent to Dh191.3 billion at the previous year-end.

“We have maintained revenues at similar levels to the same period in 2009 and have continued to reduce operating expenses from ongoing rationalisation and our ability to leverage off the completion of the integration in 2009,” said the bank’s chief executive officer, Rick Pudner.

Pudner said the bank, one of a seven-member panel in debt restructuring talks with state-owned conglomerate Dubai World, expected a resolution on the matter in weeks. “A lot progress was made in the last few weeks. Talks are progressing positively,” Pudner told reporters in a conference call.