Emirates NBD’s 9-month net profit surges 63% to Dh12.5b

Emirates NBD, ENBD, Network International, quarterly results, Warburg Pincus, General Atlantic, Patrick Sullivan, Surya Subramanian

Emirates NBD's profit attributable to shareholders rose to Dh5 billion in the three months ended September 30, a statement said.



by

Issac John

Published: Mon 28 Oct 2019, 11:20 AM

Last updated: Mon 28 Oct 2019, 8:52 PM

Dubai’s largest bank, Emirates NBD, announced on Monday a 63 per cent jump in net profit to Dh12.5 billion in the first nine months of 2019.
The results include a Dh4.4 billion impact from the Network International transaction, the bank said.
Delivering a strong set of results, the bank said total assets grew 35 per cent to Dh675.6 billion while total income of Dh15.5 billion improved 20 per cent year on year due to loan growth and higher fee income during 2019.
The bank said in a statement that core operating profit grew 5 per cent year-on-year basis post DenizBank acquisition, supported by a 17 per cent increase in net interest income on loan growth and a 31 per cent increase in non-interest income from higher foreign exchange and credit card income.
The bank’s balance sheet remains strong with healthy liquidity and credit quality. A rights issue has been announced to further boost capital ratios.
While impairment charge increased 149 per cent y-o-y with cost of risk increasing to an annualised 103 bps due to the inclusion of DenizBank and lower writebacks and recoveries, net interest margin improved one basis point to 2.82 per cent helped by the positive impact of DenizBank. Customer loans advanced 31 per cent to Dh429.7 billion during 2019 with the inclusion of DenizBank as customer deposits increased 35 per cent to Dh468.2 billion during 2019 with the inclusion of DenizBank.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD, said the bank is delighted to be ranked among the top 20 in the Forbes’ list of the World’s Best Regarded Companies, securing a leading spot among global brands. “This reflects our relentless effort to deliver unparalleled customer service and best-in-class products, whilst being a champion of corporate social responsibility and sustainability.”
Shayne Nelson, group chief executive officer, said the successful completion of the rights issue would ensure that the bank’s capital base provides a strong foundation to embrace controlled growth in the coming years. ‘We have delivered further digital innovation with the creation of E20., a digital business bank for SMEs and entrepreneurs.’
Surya Subramanian, group chief financial officer, said the operating performance for the first nine months of 2019 was pleasing as Core Operating profit advanced five per cent supported by asset growth and higher fee income. “With the inclusion of DenizBank, total income grew 20 per cent in the first nine months, helped by 17 per cent growth in net interest income and a 31 per cent improvement in non-interest income.”
The bank said the acquisition of DenizBank in the third quarter of 2019 represented a significant milestone by expanding its presence to 13 countries and establishing Emirates NBD as a leading Bank in the Menat region with over 14 million customers. The bank also raised the foreign ownership limit from five per cent to 20 per cent and announced its intention to seek shareholder and regulatory approval to further increase this to 40 per cent.
The bank’s research team expects the UAE headline GDP growth to reach 2.0 per cent in 2019, up from 1.7 per cent in 2018 as the oil sector is expected to contribute positively to overall economic growth. Dubai is expected to be the main engine of non-oil growth in the UAE this year, with GDP forecast to expand 3.0 per cent in 2019.
Residential real estate prices and rents have continued to decline in 2019 as increased supply and reduced demand remain headwinds.
— issacjohn@khaleejtimes.com


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