Record Half-Year Net Profits of AED 3.9 billion, up 5% on higher net interest income, lower expenses and lower provisions
Announces AED 1 billion investment for digital transformation
Emirates NBD (DFM: EmiratesNBD), a leading bank in the region, delivered a record set of results with net profit up 5% to AED 3.9 billion. Net interest income improved 2% year-on-year due to loan growth and helped by a recent improvement in margins. Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased. The operating performance was also supported by a control on expenses and lower provisions. The Bank’s balance sheet continues to strengthen with further improvements in credit quality and capital, coupled with solid liquidity ratios.
Emirates NBD affirmed its credentials as the region’s leader in digital banking with a revamp of its online banking platform including the launch of FaceBanking, a video banking facility that allows eligible customers to talk to an advisor at any time for assistance or sign up for a new loan instantly. The bank also announced a planned investment of AED 1 billion over the next three years to carry out a digital transformation program.
Financial Highlights – H1 2017
- Net profit of AED 3.9 billion, up 5% y-o-y from H1-16
- Net Interest Income improved 2% y-o-y on loan growth and helped by a recent improvement in margins
- Net Interest Margin improved by 20bp from 2.29% in Q4-16 to 2.49% in Q2-17
- Total Income of AED 7.5 billion, declined 3% y-o-y due to lower gains from the sale of investments
- Total assets at AED 456.2 billion, up 2% from end 2016
- Customer loans at AED 304.0 billion, up 5% from end 2016
- Customer deposits at AED 319.9 billion, up 3% from end 2016
- Impaired Loan ratio improved to 6.1% whilst the Impaired Loan Coverage ratio strengthened to 123.5%.
- Liquidity Coverage Ratio of 157.3% and AD ratio of 95% demonstrates healthy liquidity position
- Tier 1 Capital Ratio strengthened to 18.3% and Capital Adequacy Ratio advanced to 20.7% with retained earnings
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: “It is extremely pleasing to report that Emirates NBD has achieved its highest ever net profit in the first half of 2017. We are honoured to be 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. Our digital banking leadership, along with our solid financial and operating performance, were once again recognized in this year’s Euromoney Awards for Excellence when Emirates NBD was awarded ‘Best Digital Bank in the Middle East’ and ‘Best Bank in the UAE’. We were pleased to have published Emirates NBD’s first Sustainability Report earlier this year, confirming our commitment to being an ethical and responsible bank. The Bank now has ten disability friendly branches among our network. We are also piloting a digital sign language platform for people with hearing disabilities. Throughout 2017, we aim to embrace and adopt the Year of Giving by ensuring that all activities in our CSR calendar are designed to make a difference to individuals, society and the nation as a whole.”