Emirates NBD has delivered an impressive set of financial results with net profit up 30% year on year to AED2.35 billion.
The strong operating performance for the first half of 2014 was helped by solid revenue growth in both Retail Banking and Wealth Management and its Islamic Banking subsidiary, Emirates Islamic, which has successfully transformed itself to be one of the fastest growing segments within the group.
Net profit for the half year ended 30th June 2014 amounted to AED2.35 billion, up 30% from H1-13. Total Income for H1-14 grew by 27% to AED7.04 billion, whilst Pre-Impairment Operating Profit forH1-14 improved by 35% to AED4.91 billion.
Total assets grew by 2% to AED348.3 billion in the first half of 2014. Customer loans increased by 1% during the first half of 2014 to AED241.8 billion. Customer deposits also increased by 6% to AED252.9 billion over the same period.
The Bank’s Advances to Deposits ratio improved to 95.6% from 99.5% at the end of 2013. The Bank’s NPL ratio improved further to 13.5% whilst the Tier 1 ratio strengthened to 15.6%. Backed by this stronger liquidity and capital profile, on 20th July 2014, Emirates NBD were able to repay the remaining AED4.8 billion Ministry of Finance Deposits received in 2008.
Group Chief Executive Officer, Emirates NBD, Shayne Nelson, said, “During the first half of 2014, we have delivered another healthy set of results, with net profit up by 30% to AED2.35 billion. This is driven by strong growth in both net interest income and non-interest income coupled with a firm control on expenses. As a result, the bank is in a healthier position than at the beginning of 2014 in each of these areas. I am confident that the Bank will continue to deliver excellent service to our customers and superior value to our shareholders.” Emirates Islamic (EI) continued to show a steady performance with total income increasing by 28% to AED918 million from AED717 million for H1-13. Net financing and investing receivables grew by 4% to AED23.8 billion from the end of 2013. As at 30th June 2014, the branch and ATM/SDM network of EI totalled 53 and 176 respectively.
EI growth continued with a net profit of AED226 million compared to AED112 million in H1-13, leveraging its expanded platform to better serve its Retail, SME and Corporate customers.
EI also contributed to an increase in fee income due to higher customer account volumes. EI recently introduced a trading platform for Murabaha in partnership with NASDAQ Dubai. This new initiative is starting to generate fee income.
The Bank’s success continued to be recognised across the industry, with EI winning Best Premium Islamic Card and Best Self Employed Finance at the CPI Financial in early 2014.
Source : WAM News Agency for United Arab Emirates
