Emirates NBD PJSC posted a 16 per cent increase in third-quarter profit, topping analyst estimates, as the biggest bank in Dubai benefited from higher interest income.
Net income rose to AED 2.64 billion ($719 million) from AED 2.28 billion, the Dubai Government-controlled bank said in a statement. The mean estimate of four analysts was for as a profit of AED 2.55 billion, according to data compiled by Bloomberg. Net interest income rose 18 per cent to AED 3.31 billion.
“The operating performance for the third quarter of 2018 was satisfying as all business segments delivered a year-on-year increase in both operating income and contribution to group profit," Group Chief Financial Officer Surya Subramanian said. "Margins continued to improve as rate rises flowed through to loan book which more than offset a rise in deposit costs."
He added that any benefit from future rate rises may be limited as the bank has experienced some migration from current account and savings account to fixed deposits.