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Sun 18 Jan 2015 01:35 PM

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Dubai's largest lender says 2014 net profit rises by 58%

Emirates NBD says all parts of business deliver revenue growth to help full-year net profit reach $1.38bn

Dubai's largest lender says 2014 net profit rises by 58%

Emirates NBD, the largest bank in Dubai, on Sunday said its full-year net profit in 2014 rose by 58 percent to AED5.1 billion ($1.38 billion), with fourth-quarter profits soaring 82 percent.

The bank said in a statement that all parts of the business delivered year-on-year revenue growth, allowing the board of directors to recommend an increase in the 2014 dividend to 35 fils from 25 fils per share.

Total income for the year grew by 22 percent to AED14.4 billion, the statement said, adding that the bank’s balance sheet strengthened further in 2014 thanks to an improvement in the capital, liquidity and credit quality ratios.

Emirates NBD's impaired loan ratio improved significantly to 7.8 percent in 2014 due to the bank’s reclassification of its Dubai World exposure, the writing-off of fully provided retail loans and an increase in recoveries and repayments on the back of an improved economy.

Commenting on the Group’s performance, Sheikh Ahmed Bin Saeed Al Maktoum, chairman, Emirates NBD said: “2014 was a momentous year for Emirates NBD as we reached a number of key milestones.

"We are the first bank in the UAE, and for the first time in our 50 year history, to report an annual operating profit before impairment in excess of AED10 billion.

"It is particularly pleasing that all the group’s business units delivered a strong performance in 2014. As a leading bank in the region, we are well placed to take advantage of future growth opportunities in Dubai, the UAE and the Gulf region.”

Shayne Nelson, Group CEO, Emirates NBD, added: “2014 saw a maturing of the Group’s balance sheet and income statement... Costs remain firmly under control with a cost-to-income ratio of 30.4 percent for 2014, comfortably within our longer term target range.”

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