Wednesday 14 November 2018
 
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40pc DIVIDEND PROPOSED

Sheikh Ahmed Bin Saeed Al Maktoum and Hesham Abdulla Al Qassim

Emirates NBD 2017 net profit surges 15pc to $2.27bn

DUBAI, January 16, 2018

Emirates NBD, a leading bank in the region, delivered a strong set of results with record net profit of Dh8.35 billion ($2.27 billion) in 2017 as against net profits of Dh7.23 billion in the previous year, marking a surge of 15 per cent.

Net interest income improved 7 per cent year-on-year (y-o-y) due to loan growth and the positive impact of recent rate rises. The operating performance was also supported by higher non-interest income, lower expenses and an improved cost of risk.

The bank’s balance sheet continues to strengthen with further improvements in capital and liquidity and stable credit quality. These results have enabled the Board of Directors to recommend a 2017 dividend of 40 fils per share, a statement said.

Sheikh Ahmed Bin Saeed Al Maktoum, chairman, Emirates NBD said: “2017 marked a successful year for Emirates NBD as we achieved a record annual net profit. We continued to advance Emirates NBD’s digital capabilities and are honoured to be named the Official Banking Partner for Expo 2020 Dubai where we will play a key role in ensuring that banking services at Expo 2020 Dubai are at the forefront of innovation.

“As a home-grown bank, we are proud to have dedicated our 2017 Corporate Social Responsibility activities to the UAE’s Year of Giving initiative and successfully exceeded our targets. In 2018, we will align our CSR activities and strategy to the Year of Zayed initiative to honour the legacy of our nation’s founding father. As a leading bank in the region and a front-runner in digital banking innovation with a strong balance sheet, we are well placed to take advantage of growth opportunities in our preferred markets.”

Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD said: “Emirates NBD delivered an excellent performance in 2017, achieving a record annual net profit of Dh8.35 billion. The bank’s strong financial and operating performance, along with its digital focus, were also recognized when Emirates NBD was named The Banker’s ‘Bank of the Year – UAE’ for the third consecutive year.

“We opened our first branch in India and will continue to expand the Bank’s international presence in 2018, by growing our branch network in Egypt and Saudi Arabia and opening a representative office in Turkey, to better support our customer network. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”

Shayne Nelson, Group chief executive officer, said: “Emirates NBD delivered a record performance in 2017 as net profit increased by 15 per cent to reach a new high of Dh8.35 billion, underpinned by higher income, a control on expenses and a lower cost of risk.”

“Margins widened 22 bps in 2017, helped by rate rises and improved funding costs. The Group’s balance sheet continued to strengthen, with further improvements in capital and liquidity and a stable credit quality profile. We made good progress in advancing our digital agenda and are pleased to be named Most Innovative Financial Services Organization of the Year at the BAI Global Innovations Awards forum.

“As part of the Bank’s efforts to drive further innovation, I am delighted to announce our partnership with Motive Partners to launch Motive Labs, an innovation and investment accelerator to pioneer digital transformation across the financial services industry. Going forward, I am confident that Emirates NBD will continue to deliver excellent customer service and superior value to our shareholders,” he added.

Emirates Islamic (EI)

Emirates Islamic achieved a record net profit of Dh702 million in 2017, a six-fold improvement from 2016.

EI reported a total income (net of customers’ share of profit and distribution to Sukuk holders) amounting to Dh2.4 billion for 2017, a decline of 4 per cent compared to 2016 due to EI’s shift to financing secured and superior credit risk rated customers. Total cost improved by 7 per cent as a result of the consistent control of operating costs.

EI recorded its highest ever total assets of Dh62 billion and customer deposits grew by 2 per cent to Dh42 billion. Financing and investing receivables declined by 7 per cent to Dh34 billion due to containment in new business as a result of a tightening in underwriting standards.

Outlook

“We expect the UAE’s growth rate to accelerate to 3.4 per cent in 2018 from an estimated 2.0 per cent last year. The slowdown in 2017 was primarily due to oil production cuts and crude output should recover this year,” the statement said.

“Non-oil sector growth will be underpinned by investment in infrastructure as the country prepares for Expo 2020, with the public sector driving this investment.  Household consumption is likely to be constrained against a backdrop of modest job and wage growth, higher taxes and increased fuel costs. VAT is being introduced at a time when the economy is in relatively good shape and able to absorb its impact.

“The bank will continue to implement its successful strategy built around five pillars which include delivering excellent customer experience with a digital focus, building a high performance organisation, driving core businesses, running an efficient organisation and driving geographic expansion,” it added. – TradeArabia News Service




Tags: Emirates Islamic | Emirates NBD | 2017 |

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