Emirates NBD Announces Full Year 2016 Results

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

To learn more, please visit: http://www.emiratesnbd.com/en/media-centre/media-centre-info/?mcid_en=398