Solid 2015 for Emirates NBD as profit leaps 39% to Dh7.1b

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Solid 2015 for Emirates NBD as profit leaps 39% to Dh7.1b
Sheikh Ahmed bin Saeed Al Maktouum

Dubai - Total income for the year grew by five per cent to Dh15.2 billion.

By Abdul Basit

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Published: Mon 18 Jan 2016, 11:00 PM

Last updated: Tue 19 Jan 2016, 10:08 AM

Higher income and lower provisions helped boost Emirates NBD's 2015 net profit by 39 per cent to Dh7.1 billion.
"The strong operating performance was helped by income growth, a modest increase in costs and a lower impairment charge. These results have enabled the board of directors to recommend an increase in the 2015 dividend to 40 fils from 35 fils per share," the Dubai-listed bank said in a statement on Monday.
Total income for the year grew by five per cent to Dh15.2 billion. Net interest income grew eight per cent to Dh10.2 billion due to growth in assets and a lower cost of deposits. Non-interest income improved one per cent to Dh5 billion as core fee income growth was offset by lower gains from the sale of properties and investments.
Core fee income improved 14 per cent year-on-year, driven by growth in trade finance, foreign exchange and derivative income, alongside growing credit card volumes.
The bank's balance sheet remains strong due to further improvements in the credit quality and liquidity profile coupled with robust capital ratios. Despite a more challenging year for regional liquidity, the bank's advances to deposits ratio improved to 94.2 per cent as a result of further growth in stable funding sources such as current account and savings account deposits.
The bank prudently issued Dh10.6 billion of term debt with most of this issued in the first half of 2015 when market conditions were receptive. The impaired loan ratio improved to 7.1 per cent and the cost of risk declined for the sixth consecutive quarter whilst the impaired loan coverage ratio increased to 111.5 per cent.
"2015 marked another successful year for Emirates NBD as we continue to reach new milestones," said Shaikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD.
"During the year, and for the first time in the bank's history, total assets crossed the $100 billion mark," added Shaikh Ahmed, who is also President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group.
Vice-chairman Hesham Abdulla Al Qassim said: "The group is well-positioned to continue to utilise our strong franchise and balance sheet to take advantage of growth opportunities in our preferred markets."
Group chief executive officer Shayne Nelson said: "We delivered strong growth in net profit, supported by an enhanced asset mix, a further improvement in credit quality and an improved cost of risk."
- abdulbasit@khaleejtimes.com


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