Emirates NBD's H1 profit rises 29% to Dh5 billion

Emirates NBD on Wednesday said that its net profit rose 29 per cent to over Dh5 billion in the first-half of 2018, due to higher net interest income and lower provisions.
Its net interest income increased 20 per cent year-on-year due to loan growth and a further improvement in margins. The operating performance was also supported by a 40 per cent improvement in provisions during the first-half.
It recorded total income of Dh8.5 billion, an increase of 13 per cent year-on-year. Assets stood at Dh477.5 billion, up two per cent from end of 2017. Customer loans reached Dh316.4 billion, up four per cent from end of 2017, while customer deposits totalled Dh335 billion, up three per cent from 2017-end.
Strong profitability of Dubai's largest lender boosted its shares by two per cent on Wednesday, and also emerging the top gainer of the day. It also helped the Dubai bourse end the day in green. Emirates NBD shares rose 20 fils to Dh10.30 at the close of the trading. Dubai's largest lender posted a 30 per cent rise in second-quarter net profit, beating analysts' estimates.
It made a net profit of Dh2.63 billion in the three months to June 30 compared with Dh2.02 billion in the corresponding period of 2017. Sico Bahrain and EFG Hermes had predicted net profit of Dh2.31 billion and Dh2.14 billion, respectively, for the bank. In the second-quarter, provisions for bad loans eased by 49 per cent to Dh315 million.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD, said in its first year of operation, Liv., the lifestyle digital bank for millennials, has attracted over one hundred thousand customers and is now the fastest growing digital bank in the UAE with 84 per cent of customers are new to the Bank.
Shayne Nelson, group CEO, Emirates NBD, said for the first time in the group's history, it delivered a half yearly net profit in excess of Dh5 billion underpinned by higher net interest income on the back of loan growth and improving margins and a lower cost of risk.
"Following the bank's announcement to enter into a definitive agreement to buy Sberbank's 99.85 per cent stake in Denizbank AS, we were pleased that both Moody's and Fitch affirmed the ratings and outlook of Emirates NBD," Nelson said.
Surya Subramanian, group CFO, Emirates NBD, said the operating performance for the second quarter of 2018 was pleasing as the lender delivered a record quarterly net profit supported by growth in core business.
"Margins improved 14 bps during the quarter as rate rises flowed through to the loan book and more than offset a modest increase in deposit costs," he said.
- waheedabbas@khaleejtimes.com