Emirates NBD profit up 29% to Dh5 billion in H1

Net interest income improved 20 per cent year-on-year due to loan growth and a further improvement in margins.

Emirates NBD bank said net profit rose 29 per cent to over Dh5 billion in the first-half of 2018 on higher net interest income and lower provisions.
Net interest income improved 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.
The bank said net interest margin improved by 33 bps y-o-y to 2.78 per cent helped by rate rises. It recorded total income of Dh8.5 billion, improved 13 per cent y-o-y. Total assets stood Dh477.5 billion, up 2 per cent from end 2017. Customer loans reached Dh316.4 billion, up 4 per cent from end 2017, while customer deposits at Dh335.0 billion, up 3 per cent from end 2017.
The bank's impaired loan ratio was stable at 6 per cent whilst coverage ratio strengthened to 128.4 per cent.
Dubai's largest lender posted a 30 per cent rise in second-quarter net profit on Wednesday. The bank made a net profit of Dh2.63 billion in the three months to June 30, it said in a statement, compared with Dh2.02 billion in the corresponding period of 2017.
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. Liv. is now the fastest growing digital bank in the UAE and 84 per cent of customers are new to the Bank."
Shayne Nelson, Group Chief Executive Officer, said: "For the first time in the Group's history, Emirates NBD 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 A.S., we were pleased that both Moody's and Fitch affirmed the ratings and outlook of Emirates NBD."
Group Chief Financial Officer, Surya Subramanian said the operating performance for the second quarter of 2018 was pleasing as we delivered a record quarterly net profit supported by growth in our 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.coma