Wednesday 23 January 2019

Hesham Abdulla Al Qassim and Shayne Nelson

Emirates NBD Q1 net profit surges 27pc to $653m

DUBAI, April 18, 2018

Emirates NBD, a leading bank in the region, has posted a net profit of Dh2.4 billion ($653 million) or the first quarter (Q1) of the year, reflecting an increase of 27 per cent year-on-year (y-o-y) and 10 per cent (q-o-q).

The solid operating performance was underpinned by higher net interest income on the back of loan growth and improved margins, and a lower cost of risk, the bank said in a statement.

The bank’s balance sheet continues to strengthen with further improvements in credit quality, coupled with solid liquidity and capital ratios, it added.

The bank reported a total income of Dh4.1 billion, marking a 13 per cent improvement y-o-y due to loan growth and the positive impact of recent rate rises.

Net interest margin improved by 17 bps to 2.68 per cent in Q1-18 from 2.51 per cent in Q4-17, helped by rate rises and stable funding costs, while total assets reached Dh475.6 billion, up 1 per cent from end 2017.

Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD said: “I am delighted that Emirates NBD has delivered another record net profit this quarter. Emirates NBD is ranked the UAE’s most valuable banking brand for the second consecutive year, and 71st worldwide, by The banker. As the region’s leader in digital banking, we rolled out several initiatives this year, including the Group’s first Innovation Month, aligned to the UAE Innovation Month initiative launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai.”

“We also introduced self-service banking initiatives for People of Determination, as we drive financial inclusion for everyone in the UAE. As a homegrown bank, we remain committed to contribute to the communities we serve and are proud to dedicate our 2018 CSR activities to the Year of Zayed to honour the legacy of our nation’s founding father.”

Group chief executive officer Shayne Nelson said: “Emirates NBD delivered a strong set of results in the first quarter of 2018. Net profit increased by 27 per cent to reach a record quarter high of Dh2.4billion, underpinned by higher net interest income on the back of loan growth and improving margins and a lower cost of risk.

“The Group’s balance sheet remains strong with solid liquidity and capital ratios and a further strengthening in credit quality. We continued to expand the bank’s international presence and opened a new branch in Jeddah last month and we are in the process of opening two further branches in the Kingdom of Saudi Arabia. We are well positioned to utilise our strong franchise, digital capabilities and financial strength to take advantage of growth opportunities within the region.”

Group chief financial officer Surya Subramanian said: “The operating performance for the first quarter of 2018 was pleasing as we delivered a record quarterly net profit supported by growth in our core business. Margins widened 17 bps during the quarter as rate rises flowed through to the loan book and funding costs remained stable due to healthy liquidity conditions.

“With CASA representing 57 per cent of deposits, our book is positioned to benefit from expected rate rises. The cost to income ratio, at 31.1 per cent, provides headroom to keep investing for future growth as we further enhance our digital and technology capabilities.” – TradeArabia News Service

Tags: Dubai | Emirates NBD |

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