Emirates NBD H1 profit reaches AED3.7 billion

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Dubai / Emirates Business

Emirates NBD, the UAE’s largest lender, delivered a solid set of financial results with net profit up 12% to AED 3.7 billion. The healthy operating performance was helped by an increase in total income, driven by asset growth and higher core fee income, coupled with higher recoveries.
Emirates NBD’s solid financial and operating performance, along with its best-in-class digital banking platform, were also recognised in this year’s Euromoney Awards for Excellence. Emirates NBD became the first bank in the Middle East to win in three categories, namely Best Bank in the Middle East, Best Bank in the UAE, and Best Digital Bank in the Middle East.
This recognition coincided with the Bank’s announcement to invest 500 million dirhams over the next three years towards digital innovation as the Bank looks to launch the UAE’s first digital bank for millennials. This will create a new paradigm in the way people bank in the UAE. It will offer customers the next generation of self-service money management with innovative tools and applications.
Commenting on the Group’s performance, Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: “I am very pleased with the strong performance that Emirates NBD has delivered in the first half of 2016. In H1 2016, Emirates NBD achieved a 12% growth in net profit to AED 3.7 billion. Emirates NBD continued to deliver further improvements in asset quality, whilst strengthening its structural liquidity and capital ratios. Our solid financial and operating performance, along with our leadership in digital banking innovation, were also recognised in this year’s Euromoney for Excellence awards, reinforcing our position as the leading bank in the region. In particular, the award for Best Digital Bank in the Middle East is testament to the success of Emirates NBD’s multichannel transformation strategy. The Group continues to invest in digital initiatives to improve customer engagement and experience, in line with Dubai’s vision of becoming a Smart City. Going forward, the Group is well positioned to utilise our strong franchise, capital and liquidity base to take advantage of growth opportunities within the region.”
Group Chief Executive Officer, Shayne Nelson said: “I am delighted that we have delivered another strong set of financial results driven by higher income from asset growth and lower provisions due to improving asset quality. The Group’s improved and resilient financial profile was also reflected in the recent upgrade of Emirates NBD’s long-term rating to A3 by Moody’s. We also announced our intention to invest AED 500 million over the next three years towards digital innovation as we look to launch the UAE’s first digital bank for millennials. This will create a new paradigm in the way people bank in the UAE. It will offer customers the next generation of self-service money management with innovative tools and applications. Whilst we remain cautiously optimistic for the remainder of 2016, I am confident that our prudent business model shall enable us to deal with the opportunities and challenges that will present themselves
Group Chief Financial Officer, Surya Subramanian, said: “The operating performance for the first half of 2016 continued to improve, as demonstrated by the growth in both total income and net profit. We remain focused on controlling expenses whilst ensuring that we continue to invest to support future growth, as demonstrated by the investment to create the UAE’s first digital bank for millennials. During the first half of 2016, we took advantage of favourable market conditions to prudently raise over AED 14 billion of term funding, further boosting our structural liquidity. The upgrade from Moody’s reflects the Bank’s strong and resilient profile.”

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