Emirates NBD, Dubai’s largest bank, announced its financial results for the third quarter of 2024, reporting a net profit of 5.2 billion dirhams ($1.42 billion). This figure remains the same as what the bank achieved during the same period last year, and it came in below the expectations of many analysts.
The bank’s net interest income, which is the money earned from loans after accounting for interest paid on deposits, increased by 8%, reaching 8.5 billion dirhams. This rise was driven by strong loan growth and higher interest rates. However, the overall financial performance was impacted by other factors. The bank had to deal with higher impairment charges, which are set aside to cover potential loan losses, and this weighed on their profits. Additionally, non-funded income, which includes fees and commissions, fell by 15%, further affecting the results.
On a positive note, the bank’s total assets grew by 14%, reaching an impressive 931 billion dirhams, indicating solid growth in its balance sheet. Additionally, the non-performing loans ratio, which measures the portion of loans that are in default, improved to 3.9%, showing that the bank is successfully managing its risk and maintaining a healthier loan portfolio.
While Emirates NBD’s profit remained steady compared to last year, the increased costs and decline in some areas of income highlight the challenges the bank is facing in navigating the current economic environment. Nonetheless, its asset growth and improving loan quality are positive signs for the bank’s long-term performance.
