Emirates NBD Posts Record Profit of $3.76 Billion in H1-24

Backed by increased lending across its regional network and substantial impaired loan recoveries, Dubai-based Emirates NBD, the leading financial services brand in the UAE, on Thursday reported a record profit of $3.76 billion in the first half of 2024.

The quarterly profit topped $1.91 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 $136.13 billion milestone on strong regional demand, Emirates NBD said in a disclosure with Dubai Financial Market (DFM) this morning.

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 (AUM) by an incredible 41% y-o-y.

Corporate lending originated $13.07 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

The bank’s profits grew by 12% on significant loan growth, a stable low-cost funding base and substantial recoveries and the total income was up to $5.83 billion on strong loan growth across all business segments coupled with an excellent stable, low-cost funding mix.

Deposit mix has been a key strength growing $10.62 billion in the first half, evenly split between current and savings accounts and fixed deposits while net interest margin (NIM) improved to 3.65% in the second quarter of 2024 as the NIMs of the Turkiye-based DenizBank, which is owned by Emirates NBD, increased on favourable loan pricing and stable funding costs.

The impairment credit stood at $600 million on regularisation of loan payments as clients benefited from a buoyant economy with impaired loan ratio improving to 4.2%.

Even Emirates Islamic, one of the four Islamic banks in the UAE, has posted a record profit of $460 million in the first six months of the year as balance sheet surpassed $272 million.

Emirates NBD’s AUM grew by an impressive 41% y-o-y to $25 billion, reflecting ongoing success of our wealth management strategy, the bank said.

Emirates NBD Group CEO Shayne Nelson said that 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 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,” he said.

Outlook

The UAE and Saudi Arabia’s non-oil sectors continue to register healthy growth, offsetting lower hydrocarbon production. This non-oil growth is underpinned by strong infrastructure investment from both the private and public sectors, with a substantial pipeline of new projects in both countries.

In Egypt, the increased support from the UAE and multilateral partners since February has helped drive a turnaround in the country’s fortunes with the economic outlook stabilising, while Turkiye’s monetary policy successfully curbed inflation, registering a larger than expected fall in inflation in June.

“Regional geopolitical developments have had some effect on supply chains but businesses have not been unduly affected and tourism numbers in the UAE remain healthy,” Emirates NBD added.