Emirates NBD announced on Wednesday a net combined profit of Dh4 billion for 2007, up by 35 per cent from the figures posted in 2006. The bank, formed following the merger of National Bank of Dubai and Emirates Bank in October 2007, also boasts of consolidated assets amounting Dh253.8 billion, soaring by 53 per cent from the previous year.
“The momentum of growth from both NBD and Emirates banks has gained pace and continues under the Emirates NBD umbrella. Relatively soon after the merger, we are witnessing the benefits and returns of everyone’s hard work over a very busy year,” said Rick Pudner, Emirates NBD Chief Executive Officer.
He added that the bank has expanded its product offerings, increased market share of loans and deposits, as well as consolidated corporate banking presence in the UAE and across the GCC region. Following the merger, the Dubai-based lender became the region’s largest bank in terms of assets.
According to latest Emirates NBD report, the firm generated an overall cash flow of Dh7.1 billion on a pro forma basis, as contributed by Emirates Bank’s Dh4.23 billion income and NBD’s Dh2.82 billion gains. These figures were up by 46 per cent and 53 per cent, respectively
“The primary drivers for the increase in total income were robust growth in customer assets supported by a rise in customer deposits across both the retail and wholesale businesses. [It is also] supported by a steady increase in our fee-based product revenue. The bank has continued to maintain a healthy mix of funded and non-funded income,” the report said.
Operating costs for Emirates NBD in 2007 also saw a significant increase of 51 per cent to reach Dh2.7 billion on a pro forma basis due to continued investment in expansion programmes.
In retail banking, Emirates NBD added 88 new automated teller machines (ATMs) last year, expanding its network to 440 machines. It was also selected as one of the banks authorised to offer Escrow accounts to property developers and real estate customers.
Emirates Islamic Bank, a subsidiary of Emirates NBD, also registered worthy gains with total assets growing by 65 per cent to Dh17 billion. Deposits in Shariah compliant accounts stood at Dh13.9 billion, up by 45 per cent from 2006.
“Looking ahead, we expect to see continued growth across our businesses as we are well positioned to capture the opportunities in our markets,” said Pudner.
Without giving any details, the bank disclosed its intention to expand outside the UAE in 2008.
Emirates NBD profits reach Dh4bn in 2007