Emirates NBD profit soars 44% to Dh14.5b
The bank's total income of Dh22.4 billion improved 29 per cent year-on-year due to loan growth.
With a record 44 per cent jump to Dh14.5 billion in net profit for 2019, Dubai's largest lender, Emirates NBD, capped off a landmark year of achievements.
The bank said on Monday its total income of Dh22.4 billion improved 29 per cent year-on-year due to loan growth and higher fee income while its net profit excluding the impact of the Network International transaction rose one per cent.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman, Emirates NBD, describing 2019 as a momentous year leading to a strong net profit, said the underlying performance, coupled with strategic initiatives, helped the bank generate significant shareholder value.
"The outstanding success of the rights issue underlines the confidence of local and international investors in the bank's business model and promising outlook. As the official banking partner of Expo 2020 Dubai, we are excited and honoured to be associated with the World's Greatest Show and look forward to creating a strong social and economic legacy," said Sheikh Ahmed.
In 2019, we dedicated our corporate social activities to the 'Year of Tolerance' through continuous efforts to support People of Determination. As 2020 marks the 'Year of Getting Ready for the UAE's 50th Anniversary', we will channel our efforts to help design the future for the generations to come in the next fifty years."
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD, said the bank delivered a strong set of results including a record net profit of Dh14.5 billion as total assets grew 37 per cent to Dh683 billion. "We are delighted to welcome DenizBank into the Emirates NBD family during 2019, increasing the Bank's presence to 13 countries, servicing over 14 million customers in the MENAT region."
Shayne Nelson, Group Chief Executive Officer, said core operating profit rose four per cent as higher income more than offset a rise in expenses and provisions. "NIMs improved seven bps to 2.89 per cent, helped by our expansion into Turkey, while the cost to income ratio at 32.1 per cent remains within guidance," said Shane.
He said the bank had completed the third chapter of its Dh1 billion digital transformation and would conclude the final phase ahead of the UAE's 50th anniversary.
In 2019, the bank raised its foreign ownership limit to 20 per cent and signalled its intention to further increase the limit to 40 per cent in due course.
In a statement, the lender said net interest income increased 26 per cent due to loan growth and non-interest income grew 38 per cent due to higher foreign exchange and credit card related income. "Core operating profit grew four per cent year on year helped by the inclusion of DenizBank. "The bank's balance sheet remains strong with healthy liquidity and stable credit quality. The common equity tier 1 ratio settled at 15.3 per cent following a successful rights issue in November 2019."
Customer loans increased 33 per cent to Dh437 billion during 2019 including DenizBank. Customer deposits increased 36 per cent to Dh472 billion during 2019 including DenizBank. The bank's impaired loan ratio was at 5.6 per cent and coverage ratio was 112.3 per cent. - firstname.lastname@example.org
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