Emirates NBD H1 net profit up 49% y-o-y to Dh7.5bn

Emirates NBD delivered a strong set of results with net profit up 49% y-o-y to AED 7.5 billion. The results include a gain on disposal of a stake in Network International of AED 2.1 billion. Core Operating Profit grew 8% y-o-y, supported by a 10% increase in net interest income on asset growth and a 20% increase in non-interest income from higher foreign exchange revenue and increased investment banking activity.

The Bank’s balance sheet continues to strengthen with further improvements in liquidity and the Common Equity Tier 1 capital ratio and stable credit quality.

Financial Highlights – H1 2019 Net profit of AED 7.5 billion, up 49% y-o-y Core Operating Profit advances 8% y-o-y Total Income of AED 9.5 billion improved 13% y-o-y due to asset growth and higher fee income Net Interest Margin declined 1 bp y-o-y to 2.77% on expectation of lower interest rates Total assets at AED 537.8 billion, up 7% from end 2018 Customer loans at AED 337.7 billion, up 3% from end 2018 Customer deposits at AED 366.7 billion, up 5% from end 2018 Credit quality ratios stable with impaired loan ratio at 5.9% and coverage ratio at 125.8% Liquidity Coverage Ratio of 188.8% and AD ratio of 92.1% demonstrate the Group’s healthy liquidity position Common Equity Tier 1 ratio strengthens by 0.8% to 17.4% during 2019.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD, said: "Emirates NBD delivered a healthy set of results in the first half of 2019. The Group continues to make progress on international growth. Emirates NBD is honoured to have been given permission to open twenty more branches in the Kingdom of Saudi Arabia. The Bank has opened additional branches in Egypt and all regulatory approvals for the Group’s acquisition in Turkey have been granted. In support of the ‘Year of Tolerance’, Emirates NBD has participated in programmes and initiatives that celebrate the nation’s unity and commitment to diversity."

Commenting on the Group’s performance, Shayne Nelson, Group Chief Executive Officer said: "Net profit advanced by 49 percent to reach AED 7.5 billion in the first half of 2019. This includes a AED 2.1 billion gain on the partial disposal of the Group’s stake in Network International. Core Operating Profit advanced 8 percent compared to the first half of 2018, helped by loan growth, higher foreign exchange income and increased investment banking activity. The Bank’s balance sheet remains strong with further improvements in liquidity and the Common Equity Tier 1 ratio and stable credit quality. Disability friendly access was extended and now covers about half of the Bank’s UAE network. Liv., the lifestyle digital bank for millennials achieved another milestone, reaching a base of over 250,000 customers. We continue to make progress on the acquisition of Denizbank and expect this transaction to close in the third quarter of 2019."

Surya Subramanian, Group Chief Financial Officer, said: "The operating performance for the first half of 2019 was pleasing as all business units delivered income growth. Net interest income grew by 10 percent in the first half, compared to the previous year, helped by 13 percent asset growth. Fee income advanced 20 percent due to strong growth in foreign exchange and investment banking income. Costs were 7 percent higher compared to the previous year on higher staff costs."

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