Emirates NBD H1 profit jumps 30% to Dh2.35bn

Emirates NBD said its first half 2014 profits rose 30 per cent year-on-year to Dh2.35 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.

Total income for H1 2014 grew 27 per cent to Dh7.04 billion, whilst pre-impairment operating profit for H1 2014 improved 35 per cent to Dh4.91 billion.

Total assets grew 2 per cent to Dh348.3 billion in the first half of 2014. Customer loans increased 1 per cent during the first half of 2014 to Dh241.8 billion. Customer deposits also increased 6 per cent to Dh252.9 billion over the same period.

The bank’s advances to deposits ratio improved to 95.6 per cent from 99.5 per cent at the end of 2013. The NPL ratio improved further to 13.5 per cent whilst the Tier 1 ratio strengthened to 15.6 per cent.

Backed by this stronger liquidity and capital profile, on 20th July 2014, Emirates NBD were able to repay the remaining Dh4.8 billion Ministry of Finance Deposits received in 2008.

Emirates NBD Group Chief Executive Officer Shayne Nelson said: "During the first half of 2014, we have delivered another healthy set of results… 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 per cent to Dh918 million from Dh717 million for H1 2013. Net financing and investing receivables grew by 4 per cent to Dh23.8 billion from the end of 2013. As at 30th June 2014, the branch and ATM/SDM network of Emirates Islamic totalled 53 and 176, respectively.

Emirates Islamic growth continued with a net profit of Dh226 million compared to Dh112 million in H1 2013, leveraging its expanded platform to better serve its Retail, SME and Corporate customers.

Emirates Islamic 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.

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