Emirates NBD Q1 profit jumps 15% to Dh2.7 billion, group CFO to leave

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Emirates NBD Q1 profit jumps 15% to Dh2.7 billion, group CFO to leave

Dubai - Total Income of Dh4.7 billion improved due to loan growth, an improvement in margins and higher fee income.

By Waheed Abbas

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Published: Wed 17 Apr 2019, 2:49 PM

Last updated: Wed 17 Apr 2019, 4:57 PM

Dubai's largest bank Emirates NBD on Wednesday said its first-quarter 2019 net profit grew 15 per cent year-on-year to Dh2.7 billion, supported by an increase in total income and improved margins.
Total Income of Dh4.7 billion improved 15 per cent year-on-year due to loan growth, an improvement in margins and higher fee income.
Its total assets grew 11 per cent from Dh475.6 billion in Q1 2018 to Dh525.8 billion in the first quarter of this year while both loans and deposits jumped eight per cent to Dh337.7 billion and Dh359.4 billion, respectively.

The lender said in a statement that its costs for the quarter ended March 31, 2019 amounted to Dh1.397 million, an improvement of seven per cent over the preceding quarter due to an improvement in staff costs, lower professional fees and marketing expenses. But costs increased nine per cent year-on-year in Q1 2019 due to investment in digital transformation and technology refresh.

"Our brand value reflects our solid financial performance as well as our ongoing initiatives in customer service, product development and corporate social responsibility," said Hesham Abdulla Al Qassim, vice-chairman and managing director, Emirates NBD.

"The bank's balance sheet remains strong with an improvement in liquidity and capital ratios and a stable credit quality. The bank has now converted 40 per cent of its branch network in the UAE into disability-friendly branches," said Shayne Nelson, group chief executive officer, Emirates NBD.

Commenting on Turkish bank acquisition, Nelson expects the transaction to complete by the end of Q2 2019, subject to obtaining the required regulatory approvals.

"The operating performance for the first quarter of 2019 was pleasing as we delivered growth in both net interest income and fee income. Costs improved by seven per cent from the previous quarter due to a reduction in staff costs, lower professional fees and marketing expenses. Net interest margins (Nims) declined by 2bp during the quarter as the effect of higher wholesale funding and fixed deposit costs were largely offset by an improvement in loan yields and higher Casa balances," said Surya Subramanian, group chief financial officer, Emirates NBD.
Its retail banking and wealth management unit also had a strong start to the year, delivering a total income of Dh1.939 billion during the first quarter, up eight per cent year-on-year, supported by growth in net interest income from liabilities.

Its wholesale banking income for the first quarter of 2019 increased by 12 per cent to Dh1.541 billion compared to the corresponding period in 2018. Net interest income of Dh1.143 billion for the quarter was nine per cent higher than the corresponding period in 2018 driven by both an increase in lending volumes and an improvement in margins.

Commenting on the outlook, the bank expects economic activity in 2019 to be underpinned by higher oil production as well as increased government spending, following softer-than-expected growth in 2018.

Official statistics put UAE economy growth 1.7 per cent for 2018 while the bank's research team retained their growth forecast of 3.1 per cent for the UAE in 2019.

The Bank will continue to implement its strategy built around improving customer experience with a digital focus, building a high performance organisation, driving core businesses, running an efficient organisation and driving geographic expansion.


Emirates NBD group CFO to quit
Emirates NBD on Wednesday announced that its group CFO Surya Subramanian intends to leave the banks and move to back to his home country Singapore.

The lender said in a statement sent to Dubai Financial Market that Subramanian will stay with the bank until his replacement is found.

"Surya Subramanian, group chief financial officer, has expressed a desire to go back home to Singapore to pursue family interests. The process to identify a successor from eligible internal and external candidates has already started and Surya is actively involved in the selection process," it said in a statement.

"Surya Subramanian will remain with the organization to complete an orderly handover and to bring critical strategic initiatives to closure," the statement said.

-waheedabbas@khaleejtimes.com
 


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