Dubai – Mubasher: Emirates NBD reported a 3.9% year-on-year increase in its profits during the second quarter of 2017, backed by lower expenses and provisions.

Profits reached AED 2.02 billion ($550 million) in Q2-17, compared to AED 1.91 billion ($519 million) in Q2-16.

Provisions fell 0.77% to AED 621.35 million in Q2-17, compared to AED 626.23 million in Q2-16.

General & administrative expenses (G&A) declined 10.4% to AED 1.13 billion in Q2-17, compared to AED 1.22 billion in Q2-16.

In the first half of 2017, profits declined 4.7% to AED 3.89 billion compared to AED 3.71 billion in the prior-year period.

“Despite some uncertain times Emirates NBD has delivered a record set of half-year results with net profits of AED 3.9 billion, up 5% year on year. During 2017 we have seen margins widen 20 bps as recent rate rises flowed through to loan pricing and funding costs improved as regional liquidity conditions eased," according to the group’s CEO Shayne Nelson.

"The group’s balance sheet continued to strengthen with improved capital and credit quality ratios and liquidity ratios were comfortably maintained within management’s target range," he said, adding that "we plan to continue our digital transformation program with a planned investment of AED 1 billion over the next three years".