Emirates NBD, a leading bank in the region, delivered a strong set of results for the first nine months of this year with net profit growth of 24% year-on-year to Dh7.7 billion ($2.1 billion). 

 

Net interest income increased 19% year-on-year due to loan growth coupled with an improvement in margins. The operating performance was also supported by a 35% year-on-year improvement in provisions. The bank’s balance sheet remains solid with a further strengthening in capital due to retained earnings, healthy liquidity and an improvement in the non-performing loan ratio, the bank said. 

 

Other Financial Highlights

* Net Interest Margin increased by 35 bps y-o-y to 2.81% helped by rate rises

* Total income of Dh12.9 billion improved 13% y-o-y

* Total assets at Dh492.6 billion, up 5% from end 2017

* Customer loans at Dh324.7 billion, up 7% from end 2017

* Customer deposits at Dh341.2 billion, up 4% from end 2017

* Impaired Loan ratio improved to 5.8% whilst coverage ratio remained strong to 127.4% 

* Liquidity Coverage Ratio of 196.5% and AD ratio of 95.2% demonstrate the group’s healthy liquidity position 

* Capital Ratios strengthened with Common Equity Tier 1 Ratio improving to 16.6% and Capital Adequacy Ratio at 21.3%

 

Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD, said: “I am very pleased that Emirates NBD has delivered a strong net profit in the first nine months of 2018. Guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Smart Dubai has announced an ambitious roadmap to prepare Dubai as a world-leading technology hub by 2021, in celebration of the nation's golden jubilee.”

 

Group chief executive officer Shayne Nelson said: “Emirates NBD delivered a strong nine-month net profit of Dh7.7 billion underpinned by higher net interest income on the back of loan growth coupled with an improvement in margins. The bank’s balance sheet remains solid with a further strengthening in capital due to retained earnings, coupled with an improvement in the non-performing loan ratio and healthy liquidity. In a sign of confidence from relationship banks, Emirates NBD successfully closed a three-year $2 billion term loan facility in September. The deal was highly successful as demonstrated by the upsizing and improved pricing, reflecting Emirates NBD’s strength as a leading bank in the MENA region, as well as its strong relationships with international banks.”  - TradeArabia News Service