Dubai-listed banks’ combined profit down 2% in H1

The combined profit of Dubai-listed banks fell 2 percent year-on-year (YoY) in H1-2016 to AED 7.29 billion, data compiled by Argaam showed.

Emirates NBD contributed the most to sector profit in the first half as the bank’s net income amounted to AED 3.72 billion, representing 51 percent of total combined earnings.

Dubai Islamic Bank (DIB) followed, accounting for 25 percent of sector profit, while Mashreq Bank made up 15 percent.

Meanwhile, Emirates Islamic Bank (EIB) recorded the biggest profit drop of 69 percent in H1-2016, due to an increase in asset impairment provisions to AED 504.4 million, as well as a 30 percent rise in total expenses.

Ajman Bank saw the highest increase in H1 profit of 18 percent YoY to AED 62.7 million.

Three banks reported profit growth during H1, while four banks posted profit declines.

Dubai banks trade at a P/E ratio of 5.5-20.8 times based on their trailing 12 months (TTM) net income.