Emirates NBD, Dubai’s largest lender, recently reported a 12% increase in half-yearly profits, reaching a record of Dh13.8 billion. This growth was primarily driven by increased lending activities across its regional network and significant recoveries from impaired loans. The bank’s quarterly profit also reached Dh7 billion for the first time, attributed to the strong performance of Emirates Islamic, improved margins in DenizBank, and substantial recoveries supported by a thriving economy. Lending grew by 6% in the first half of 2024, surpassing the Dh500 billion mark due to robust regional demand.
Shayne Nelson, the group chief executive officer of Emirates NBD, highlighted the outstanding performance of all business units, achieving record retail lending, a one-third market share of UAE credit card spending, and a 41% year-on-year growth in Assets Under Management. Emirates Islamic generated its highest-ever profit of Dh1.7 billion in the first half of 2024, surpassing the Dh100 billion landmark on its balance sheet. Nelson emphasized that retained earnings have strengthened capital ratios and the solid balance sheet, positioning Emirates NBD as a regional powerhouse for future growth.
Emirates NBD has a strategic focus on transforming into a data-first, digital-centric, and environmentally responsible regional leader. Patrick Sullivan, the group chief financial officer, mentioned that the credit environment remains healthy, and clients are benefiting from a buoyant economy with regularized loan payments, leading to a net impairment credit of Dh2.2 billion. The bank revised its loan growth guidance upwards due to strong regional demand, while the cost of risk guidance was adjusted downwards based on the stable credit environment.
Despite the general increase in the cost of wholesale funding and term deposits, Emirates NBD’s net interest income stood strong at Dh1.4 billion. The bank’s corporate lending activities secured landmark deals across its network, originating Dh48 billion in gross new loans. With a focus on leveraging the group’s regional presence, Emirates NBD aims to drive future growth by maintaining retained earnings to bolster capital ratios and the balance sheet. Lending increased by a record Dh23 billion year-on-year, reaching Dh130 billion, while deposits grew by Dh30 billion year-on-year, maintaining a healthy CASA to Deposits ratio of 75%.
Emirates NBD also accounted for one-third of the market share of UAE credit card spending, indicating a 15% year-on-year growth. The bank’s emphasis on sustainability, digital innovation, and data-driven strategies positions it as a leading player in the regional banking sector. With a robust financial performance, strategic investments in technology, and a focus on customer-centric solutions, Emirates NBD is well-positioned to continue its growth trajectory and strengthen its position as a regional powerhouse in the banking industry.
