Adds particulars on earnings, feedback, and background
DUBAI, April 20 (Reuters) – Emirates NBD ENBD.DU, Dubai’s largest lender, on Tuesday posted a 12% rise in first-quarter internet revenue, citing bettering financial situations from the COVID-19 pandemic fallout and a pointy drop in impairments.
The Worldwide Financial Fund expects most Gulf economies to get well this yr at a quicker tempo than beforehand estimated, because it raised its 2021 international development forecast earlier this month.
The financial institution reported a internet revenue of two.32 billion dirhams ($599 million) within the reported quarter ended March 31, versus 2.081 billion dirhams within the year-ago interval, Emirates NBD mentioned in an announcement, including that internet revenue surged 76% on-quarter.
Dealer EFG Hermes had projected a internet revenue of 1.795 billion dirhams for the quarter.
Hesham Abdulla al-Qassim, the financial institution’s vice-chairman, mentioned in an announcement that the sturdy end result “displays the resilience and gradual financial restoration following the worldwide disruption in 2020.”
The Dubai lender mentioned impairments dropped 31% within the first quarter from a yr earlier, citing proactive provisioning in earlier quarters.
Non-funded revenue was up 6% from a yr earlier on improved price and funding securities revenue.
The financial institution mentioned growth into Turkey, the place it acquired DenizBank in 2019, has helped diversify its earnings, with DenizBank contributing 642 million dirhams or 28% of the group’s internet revenue.
“The worldwide economic system is exhibiting indicators of restoration as vaccination programmes in opposition to COVID-19 are rolled out,” it mentioned in an announcement.
The UAE, the Gulf’s second-largest economic system, will see development of three.1% this yr, rebounding from a 5.9% contraction in 2020, the IMF mentioned.
Emirates NBD mentioned it expanded its community within the Saudi Arabia within the first quarter with new branches within the holy cities of Mecca and Medina.
($1 = 3.6728 UAE dirham)
(Reporting by Saeed Azhar; Enhancing by Himani Sarkar and Sherry Jacob-Phillips)
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