Net profit up 2% to AED 7.24 billion Proposed dividend maintained at 40%
Emirates NBD (DFM: EmiratesNBD), the UAE’s largest lender, delivered a solid set of results with net profit up 2% to AED 7.24 billion. The operating performance was helped by further recoveries from legacy impaired loans which offset lower non-interest income. Net interest income declined 1% as a contraction in margins more than offset asset growth. These results have enabled the Board of Directors to recommend to maintain the 2016 dividend at 40 fils per share.
Financial Highlights – FY 2016
- Net profit of AED 7.24 billion, up 2% y-o-y
- Total Income of AED 14.7 billion, declined 3% y-o-y mainly due to lower non-interest income.
- Total assets at AED 448.0 billion, up 10% from end 2015
- Customer loans at AED 290.4 billion, up 7% from end 2015
- Customer deposits at AED 310.8 billion, up 8% from end 2015
- Net Interest Income declined 1% as a contraction in margins more than offset asset growth.
- Core gross fee income held steady despite one-off impact in Q4-16 from the Egyptian Pound devaluation whilst income from property and investments securities declined on lower disposals.
- Cost of risk improved to 83 basis points as impairment charge of AED 2,608 million is 23% lower than in 2015, helped by over AED 3 billion of writebacks and recoveries
- Enhanced asset quality during 2016 as Impaired Loan ratio improved to 6.4% whilst the Impaired Loan Coverage ratio strengthened to 120.1%.
- Advances to Deposit ratio at 93.4% remains comfortably within the management’s target range
- The Bank prudently raised over AED 20 billion of term debt at competitive pricing, through private placements, a sukuk issue and a club loan which further boosted structural liquidity
- Tier 1 Capital Ratio, at a healthy 18.7%, grew on the back of retained profit
- Proposed dividend maintained at 40 fils per share
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