Emirates NBD has delivered a set of financial results with net profit up 51% to AED3,913 million. The strong operating performance was helped by all parts of the business delivering year-on-year revenue growth supported by strong economic growth in Dubai as SMEs and Trade Finance drive recovery.
Total income for the first nine months of 2014 grew by 25% to AED10.89 billion. Net interest income grew 19% as the bank focused asset growth on higher margin retail and Islamic products, whilst the Bank’s liability profile improved thanks to current and saving account growth. Non-interest income grew 39% boosted by increased income from trade finance, foreign exchange and brokerage and asset management business, as well as gains from the sale of investments and property.
Emirates NBD Asset Management delivered another milestone when Assets Under Management passed the AED10 billion mark. The bank continues to lead digital banking innovation with the launch of the e-IPO platform. Over 50% of customer subscriptions for the Emaar Malls IPO were received via the bank’s ATM, online and mobile channels.
The bank’s Impaired Loan Ratio improved by 1.3% in 2014 to 12.6% due to a significant increase in repayments and recoveries on the back of an improved economy. The Impaired Loan Coverage Ratio also improved significantly by 12.8% to 70.3% in 2014.
Group Chief Executive Officer, Emirates NBD, Shayne Nelson, said, “During the first nine months of 2014, we have delivered another healthy set of results, with net profit up by 51% to AED 3.91 billion. This is driven by strong growth in both net interest income and non-interest income. It is very pleasing that each part of the business was able to deliver year-on-year revenue growth. The balance sheet continues to strengthen as we see a significant improvement in the capital ratios, the Impaired Loan Ratio and Coverage Ratios. I am confident that the bank will continue to deliver excellent service to our customers and superior value to our shareholders.” Group Chief Financial Officer, Emirates NBD, Surya Subramanian, said, “The bank has continued to deliver strong levels of operating profitability which is evident from the growth in both total income and pre-provision operating profit. Despite a competitive environment we have been able to widen margins helped by growth in higher margin retail and Islamic products, a more efficient funding and capital base and contribution from our Egyptian business. Costs remain firmly under control with a cost-to-income ratio of 29.5% for the first 9 months on 2014, 4.6% lower than the comparable period in 2013.”
Source : WAM News Agency for United Arab Emirates
