DUBAI - Emirates NBD, Dubai's biggest bank by assets, reported a 13% rise in second-quarter net profit on Thursday, beating estimates on the back of loan growth and the positive performance of unit Emirates Islamic.

Net profit attributable to shareholders for the April-to-June period came in at 7.1 billion dirhams ($1.93 billion), up from 6.2 billion dirhams a year ago.

Analysts were expecting a profit of 5.265 billion dirhams, according to LSEG data.

The quarter was helped by the strongest-ever results in the bank's Islamic business, improving margins at its Turkey-based lender DenizBank and "significant recoveries bolstered by a buoyant economy," CEO Shayne Nelson said in a statement.

Banks in the United Arab Emirates, where Emirates NBD is among the largest, have benefited from the Gulf region's growth prospects as regional governments boost investment into developing non-oil sectors and diversifying income sources.

Dubai, home to the world's tallest skyscraper and palm-shaped artificial islands, has become one of the world's fastest-growing cities, with a population of 3.6 million, according to the emirate's statistics centre.

Its property market has boomed amid a swift post-pandemic economic rebound, helped by relaxed residency rules.

Emirates NBD's total assets rose to 931 billion dirhams at the end of the second quarter, up 15% year-on-year, while lending was up 6% in the first half of the year.

Group net interest margin (NIM) improved to 3.65% in the second quarter from 3.52% in the previous quarter, as DenizBank's NIM grew on the back of favourable loan pricing and stable funding costs.

($1 = 3.6729 UAE dirham)

(Reporting by Federico Maccioni, editing by Kim Coghill and Varun H K)