Increased lending across its regional network and substantial impaired loan recoveries helped Emirates NBD post a record profit of AED13.8bn ($3.76bn) in the first half of 2024, up 12 per cent year-on-year, while quarterly profit topped AED7bn ($1.91bn) for the first time in the history of the bank, which was initially formed as National Bank of Dubai in 1963.
Strongest-ever results from Emirates Islamic, improving margins in DenizBank and a buoyant economy played their part as lending grew 6 per cent in the first half of 2024 to surpass the half-a-trillion dirham ($136.15 billion) milestone on strong demand.
Corporate lending led to AED48bn ($13.07bn) of gross new loans during the period.
Emirates NBD results
Expenses were up 12 percent to AED6.1bn, while income grew 0.4 per cent to AED21.4bn ($5.83bn). Earnings per share was up by 13 percent to 214 fils in the first half.
Deposits grew AED39bn ($10.62bn) in the first half, evenly split between Current and Savings Accounts and Fixed Deposits.
On Thursday, Emirates Islamic Bank delivered record profit of AED1.7bn in H1-24 as balance sheet surpasses AED100bn for the first time in the bank’s 20-year history.
Shayne Nelson, Group Chief Executive Officer, commented: “Quarterly profit surpassed AED7bn 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.
“All business units achieved an outstanding performance with record retail lending, a one-third market share of UAE credit card spend and Corporate lending originating AED48bn of gross new loans 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.”
Patrick Sullivan, Group Chief Financial Officer, added: “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 AED2.2bn.
“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 Group’s exceptional performance and strong balance sheet were recognised by Moody’s who improved Emirates NBD’s credit rating outlook to Positive.
During the last year, Kingdom of Saudi Arabia branch network doubled to 18, driving 33 percent loan growth in H1-24. The bank also allocated AED500 million of competitive financing to SMEs to support ‘Dubai International Growth Initiative’.
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