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11 December 2023

Emirates NBD net profit up 39% to Dh7.1bn for the first time

By Wam

Emirates NBD held its ninth annual general meeting at the bank’s headquarters, during which Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the bank, presented a review of the year ended December 31, 2015.

"The UAE private sector economy has remained resilient in 2015, and with new projects being planned, from theme parks, hotels and infrastructure in the run up to Expo 2020, we can anticipate further healthy growth. The visionary leadership of the UAE government has introduced and implemented several initiatives, which will ensure sustainable growth in the UAE and reinforce its position as a major economic power in the region. In addition, our prudent and responsive monetary policy will hold us in good stead for continued growth and development," he said.

"We have a similar positive outlook at Emirates NBD, backed by a solid set of financial results with net profit up 39 per cent to Dh7.1 billion for the first time in our history. Asset growth, an increase in income, a control on expenses and a significant improvement in the cost of risk have all contributed to our strong operating performance, with total income growing 5 per cent to Dh15.2bn. Despite a more challenging year for regional liquidity, the bank’s balance sheet remains strong due to further improvements in credit quality, strong structural liquidity and robust capital ratios," Sheikh Ahmed said.

The AGM following passed several resolutions including approval of distribution of 40 per cent cash dividend (40 fils per share) for the year ended December 31, 2015; review and approval of the Directors’ Report concerning the Group’s activities; and financial statements for the year ended December 31, 2015; apart from review and approval of the Auditors’ Report for the same period, and approval of the Consolidated Statements of the Group for the financial year.

Sheikh Ahmed added, "Our retail banking and wealth management business has grown from strength to strength, with fee income growing 12 per cent during 2015, driven by an increase in foreign exchange remittance and the credit card business. We have invested in technology to offer customers a new paradigm in retail banking, in terms of accessible banking solutions as well as an enhanced customer experience. We have strengthened and expanded our footprint in 2015 with private banking showing strong growth in its core segments across the Gulf countries and the Global South Asian segment. Wholesale banking continues to upgrade its transaction banking systems and improve levels of straight through processing. In global markets and treasury, system upgrades will support the bank’s recent significant enhancement in product capability. Moreover, we have successfully completed the integration of the Egypt business onto Emirates NBD’s systems platform, which will enable us to expand our presence further. "

 Key financial highlights for 2015 included:

 * Total income at Dh15.2bn, up 5 per cent compared with the previous year

* Net profit for 2015 of Dh7.1bn, up 39 per cent compared with the previous year

* Total assets up 12 per cent at Dh406.6bn

* Customer deposits up 11 per cent at Dh287.2bn

* Capital adequacy ratio at 20.7 per cent