Dubai’s largest lender Emirates NBD announced on Thursday 12 per cent jump in half yearly profit to a record Dh13.8 billion, driven by increased lending across its regional network and substantial impaired loan recoveries.
The bank said its quarterly profit topped Dh7 billion for the first time ever, “helped by the strongest ever results from Emirates Islamic, improving margins in DenizBank and sizeable recoveries bolstered by a buoyant economy.” Lending grew 6.0 per cent in the first-half of 2024 to surpass the Dh500 billion milestone on strong regional demand.
Shayne Nelson, group chief executive officer, said all business units achieved an outstanding performance, delivering record retail lending, a one-third market share of UAE credit card spend and growing Assets Under Management by an incredible 41 per cent year-on-year.
“We are extremely proud that Emirates Islamic generated its highest ever profit of Dh1.7 billion in the first half of 2024 as its balance sheet surpassed the Dh100 billion landmark. Retained earnings boosted capital ratios and the rock-solid balance sheet, coupled with a market leading banking infrastructure, makes Emirates NBD a regional powerhouse to drive future growth,” said Nelson.
Looking to the future, Emirates NBD is transforming into a data-first, digital-focused and environmentally responsible regional powerhouse, he said.
He said retained earnings boosted capital ratios and the rock-solid balance sheet, coupled with a market leading banking infrastructure, makes Emirates NBD a regional powerhouse to drive future growth.
Patrick Sullivan, group chief financial officer, said the credit environment remains healthy and clients continue to benefit from a buoyant economy with further regularisation of loan payments, leading to a net impairment credit of Dh2.2 billion. “Loan growth guidance was revised upwards on strong regional demand while cost of risk guidance was positively revised downwards on a healthy credit environment.”
The bank said net interest income continued to be strong at Dh1.4 billion despite the general increase in cost of wholesale funding and term deposits due to higher interest rates. “Corporate lending originated Dh48 billion of gross new loans, securing landmark deals across the network as it leverages the group’s regional presence. Retained earnings boosted capital ratios and the rock-solid balance sheet, coupled with a market leading banking infrastructure, makes Emirates NBD a regional powerhouse to drive future growth.”
Lending increased by a record Dh23 billion y-o-y, growing 21 per cent to Dh130 billion while deposits grew Dh30 billion y-o-y with a healthy CASA to Deposits ratio of 75 per cent. The lender accounted for one-third market share of UAE Credit Card spend as card spend grew 15 per cent y-o-y.
Source: www.khaleejtimes.com