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Emirates NBD sees 13% profit dip in Q2

The UAE's largest bank by assets, Emirates NBD has posted a 13% decline in second-quarter profit, as price competition and lower rates drove down interest income on loans and costs increased, Bloomberg has reported. Net income fell to Dhs647.5m ($176m) from Dhs744.5m, the lender said. Net interest income fell 5% to Dhs1.64bn, while impairment provisions fell 3% to Dhs954m. "Lacklustre top-line performance" was "the major reason behind the weakened net income," said Naveed Ahmed, an analyst at Kuwait's Global Investment House. "Net interest income remained bogged down by dropping yields, building pressure on net interest margin, the effects, of which were partially offset by improvement in loan volume."