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Emirates NBD delivered a record profit of AED 13.8 billion in the first half of 2024, driven by increased lending across its regional network and substantial impaired loan recoveries. Quarterly profit topped AED 7 billion for the first time ever, helped by the strongest ever results from Emirates Islamic, improving margins in DenizBank and sizeable recoveries bolstered by a buoyant economy. Lending grew 6% in the first half of 2024 to surpass the half-a-trillion dirham milestone on strong regional demand.
All business units achieved an outstanding performance, delivering record retail lending, a one-third market share of UAE credit card spend and growing Assets Under Management by an incredible 41% y-o-y. Corporate lending originated AED 48 billion of gross new loans, securing landmark deals across the network as it leverages the Group’s regional presence. Retained earnings boosted capital ratios and the rock-solid balance sheet, coupled with a market leading banking infrastructure, makes Emirates NBD a regional powerhouse to drive future growth.
Key Highlights – First Half 2024
- 12% profit growth on significant loan growth, a stable low-cost funding base and substantial recoveries
- Total income up to AED 21.4 billion on strong loan growth across all business segments coupled with an excellent stable, low-cost funding mix
- Strong loan growth with lending up 6% in H1-24, surpassing AED 500 billion for the first time
- Deposit mix is a key strength growing AED 39 billion in the first half, evenly split between Current & Savings Accounts and Fixed Deposits
- Net interest margin improved to 3.65% in the second quarter of 2024 as DenizBank NIMs increased on favourable loan pricing and stable funding costs
- Impairment credit of AED 2.2 billion on regularisation of loan payments as clients benefit from a buoyant economy with impaired loan ratio improving to 4.2%
- Emirates Islamic delivered record profit of AED 1.7 billion in H1-24 as balance sheet surpasses AED 100 billion
- Earnings per share up significantly by 13% to 214 fils in the first half of 2024
- Emirates NBD’s investment in customer focused services & products is propelling business growth
- Assets Under Management grew by an impressive 41% y-o-y to USD 25 billion, reflecting ongoing success of our wealth management strategy
- Fractional Bonds and Sukuk available through ENBD X, broadening investment opportunities for customers
- Aani instant payment platform, launched by the Central Bank of the UAE, available on ENBD X and EI + as a simple and fast way to move money domestically using mobile numbers
- First Trade Commodity Murabaha transaction provided to customers
- Emirates NBD Capital successfully advised on the AED 1.38 billion Spinneys IPO
- AED 500 million of competitive financing allocated to SMEs to support 'Dubai International Growth Initiative', facilitating Dubai based SMEs’ global expansion
- Kingdom of Saudi Arabia branch network doubling to 18 in last year, driving 33% loan growth in H1-24
- Moody’s improved the Outlook on Emirates NBD’s credit rating to ‘Positive’
- Looking to the future, Emirates NBD is transforming into a data-first, digital-focused and environmentally responsible regional powerhouse
- First UAE bank to publish Climate Strategy through assured Task Force on Climate-Related Financial Disclosures (TCFD) report
- Leading GCC bank in ESG ranked by Sustainalytics and rated 5th out of 311 diversified banks globally
- Emirates Islamic successfully issued its debut USD 750 million Sustainability Sukuk
- Global SustainTech Accelerator Programme launched, empowering Green FinTech companies to develop innovative solutions and support a climate-resilient future
- Generative AI implementation across business operations in partnership with Microsoft
- Emirates NBD strengthens Merchant Acquiring Solutions in partnership with Pine Labs
- Emirates NBD and Nium join forces to transform global cross-border payments in the Middle East, to offer a seamless, instantaneous, cost-effective remittance experience
- Continued growth in SWIFT for Corporates solution, with 120 active clients facilitating over
AED 100 billion in transactions
Shayne Nelson, Group Chief Executive Officer said:
- “Quarterly profit surpassed AED 7 billion for the first time ever, helped by the strongest ever results from Emirates Islamic, improving margins in DenizBank and sizeable recoveries bolstered by a buoyant economy.
- All business units achieved an outstanding performance with record retail lending, a one-third market share of UAE credit card spend and Corporate lending originating AED 48 billion of gross new loans as it leverages the Group’s regional presence.
- We are extremely proud that Emirates Islamic generated its highest ever profit of AED 1.7 billion in the first half of 2024 as its balance sheet surpassed the AED 100 billion landmark.
- We are leaders in customer security and services with the implementation of Generative AI in partnership with Microsoft and the launch of the Global SustainTech Accelerator Programme, empowering Green FinTech companies to develop innovative ESG solutions.
- Retained earnings boosted capital ratios and the rock-solid balance sheet, coupled with a market leading banking infrastructure, makes Emirates NBD a regional powerhouse to drive future growth.”
Patrick Sullivan, Group Chief Financial Officer said:
- “Total income of AED 21.4 billion on strong loan growth across all business segments coupled with an excellent stable, low-cost funding mix.
- The Group’s net interest margin improved to 3.65% in the second quarter of 2024 as DenizBank NIMs increased on favourable loan pricing and stable funding costs.
- The credit environment remains healthy and clients continue to benefit from a buoyant economy with further regularisation of loan payments, leading to a net impairment credit of AED 2.2 billion.
- Loan growth guidance was revised upwards on strong regional demand while cost of risk guidance was positively revised downwards on a healthy credit environment.
- The Group’s exceptional performance and strong balance sheet was recognised by Moody’s who improved Emirates NBD’s credit rating outlook to Positive.”