Emirates NBD, a UAE-based bank, has posted a net profit of Dh2.6 billion ($707.8 million) for the nine months ended September 30, up 34 per cent as compared to the same period last year.

The net profit for the third quarter was Dh775 million, compared with 640 million dirhams in the same period last year, said a statement.

The total income of was Dh8.7 billion, up 13 per cent against the same period last year, while operating profit was at Dh2.3 billion, up 24 per cent.

It has reported a moderate improvement in impaired loans ratio of 0.2 per cent during the period and an improvement in impaired loan coverage of  5 per cent during the period.

The total value of assets increased by 8 per cent to Dh332.3 billion, as compared to Dh308.3 billion at the end of 2012.

The capital adequacy ratio stood at a healthy level of 19 per cent, while Tier 1 ratio strengthened to 14.9 per cent from 13.8 per cent at the end of last year.

Rick Pudner, CEO, said: “During the first nine months of 2013, we have delivered a strong set of financial results with net profit for the period up by 34 per cent compared to the same period in 2012. This is testament to our ability to take advantage of the improving economic backdrop in the UAE, and Dubai in particular, as well as the relentless and successful execution of our strategic agenda.

“Profitability has been underpinned by a strong 13 per cent increase in revenue as growth momentum, particularly in our retail and Islamic franchises, has continued to gather pace.”

Surya Subramanian, CFO, said: “Operating profits for the period grew strongly by 24 per cent over the comparable period of 2012.  This performance was achieved despite continued conservative provisioning as strong top line growth was supported by improved operational, funding and capital efficiency.  We are also on track to achieving our targeted impaired loan coverage by the end of 2013 as outlined 2 years ago.”

Union properties up for sale

Emirates NBD has put its remaining 15 percent stake in Union Properties up for sale, Subramanian added.

The bank booked a gain of Dh191 million ($52.00 million) from the sale of a 32.6 percent stake in Union Properties during the first nine months of 2013.

Its remaining stake is now held as "available for sale" on its books, he said.- TradeArabia News Service and Reuters