Dubai: Leading Dubai based banks exceeded analyst’s expectations to report strong 2014 first half results on Thursday.

While Emirates NBD reported a net profit of Dh2.35 billion in the first half of 2014, up 30 per cent compared to the same period last year, its second quarter net profits were up 35 per cent at Dh1.3 billion compared to the same period last year.

The strong operating performance for the first half of 2014 was helped by solid revenue growth in both retail banking & wealth management and Islamic banking subsidiary, Emirates Islamic.

Emirates Islamic’s net profit for the first half was up 104 per cent at Dh226.46 million for the first half of 2014.In the second quarter of this year the bank’s net profits were up 70.3 per cent at Dh132.49 million compared to Dh77.78 million in the second quarter of last year.

Analysts said ENBD’s result was above their estimates. “The top-line was in line with our estimates. Overall we believe that the bank posted an amazing set of results and is very likely to prompt us to revise our full year estimates on the bank upwards again,” said Naveed Ahmed, Senior Manager, Research Group, Global Investment House.

Strong growth

Non-performing loans (NPL) ratio improved further to 13.5 per cent. The impairment charge for first half of 2014 increased to Dh2.61 billion, compared with Dh1.88 billion in the previous year with the coverage ratio improving to 64.7 per cent from 52.7 per cent in the first half of 2013.

“The healthy set of results in the first half is driven by strong growth in both net interest income and non-interest income coupled with a firm control on expenses,” said Shayne Nelson, Group Chief Executive Officer, Emirates NBD.

Dubai Islamic Bank (DIB) the largest Islamic bank in the UAE by total assets, on Thursday reported a net profit at 1.33 billion, up 81 per cent compared with Dh739 million in the same period in 2013.

In the second quarter of 2014, the bank’s net profits were up 60.9 per cent at 700.44 million compared to 436.97 million in the same quarter last year.

DIB’s net operating income before impairment charges increased 33 per cent to Dh1.7 billion. Total assets were up 9 per cent to Dh123.2 billion at June 30, 2014 compared with Dh113.3 billion at year end 2013.

“With 81 per cent growth in first half profits and similar strong performances across other key metrics, we feel that we have done justice to the confidence and faith placed in DIB by the

market,” said Dubai Islamic Bank Chief Executive Officer, Dr Adnan Chilwan.