Emirates NBD (ENBD), a leading bank in the region, has delivered a strong set of results with net profit up 15 per cent to Dh6.17billion ($1.68 billion) for the first nine months of 2017.
Net interest income improved 4 per cent year-on-year (y-o-y) due to loan growth and helped by a sustained improvement in margins. The operating performance was also supported by lower expenses and an improved cost of risk. The bank’s balance sheet continues to strengthen with stable credit quality and further improvements in capital and liquidity.
Net interest margin improved by 27 bps from 2.29 per cent in Q4-16 to 2.56 per cent in Q3-17, helped by rate rises and coupled with lower funding costs, while total income was up 1 per cent y-o-y to Dh11.4 billion.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD said: “Our strong financial and operating performance was recognized when Emirates NBD was named 'Banking Company of the Year' by Gulf Business for the second consecutive year.
“We continue to expand our international presence with our first branch in India which will enable us to better support our customers. Our 2017 CSR activities, embracing the Year of Giving, support various social and environmental opportunities which contribute to the communities we serve, including initiatives to help transform Dubai into one of the world’s most disability-friendly cities by 2020.”
Shayne Nelson, Group chief executive officer, said: “Emirates NBD delivered a strong set of results with net profit of Dh6.17 billion for the first nine months of 2017, up 15 per cent year-on-year. Margins have continued to improve throughout 2017, helped by rate rises and an improvement in funding costs.
“We are delighted to be recognized as the Most Innovative Financial Services Organization of the Year at the BAI Global Innovation Awards forum. Our planned Dh1 billion investment underlines our commitment to retain Emirates NBD's leadership position and to support the UAE as a driver of Digital innovation. We continue to extend our international branch network and, following the opening of the branch in India, work continues on opening three more branches in the Kingdom of Saudi Arabia.”
Group chief financial officer Surya Subramanian said: “We achieved a record performance for the first nine months of 2017 as we delivered positive jaws with higher income and lower expenses. With CASA representing 57 per cent of deposits, our book is positioned to benefit from expected rate rises. Expenses remain firmly under control and provide headroom to invest for future growth and to help deliver our digital aspirations. The bank is well placed to meet various accounting and regulatory changes that take effect in 2018 and we do not expect any material impact as a result.”
ENBD had earlier revised its 2017 UAE GDP growth forecast down to 2 per cent from 3.4 per cent previously on the back of lower oil output, following Opec’s decision to extend production cuts into Q1 2018. However, Dubai’s growth is likely to exceed this on the back of increased investment in infrastructure and a focus on non-oil activity. Anticipation of a 5 per cent VAT to be introduced in 2018 may boost spending in the second half of 2017, as consumers bring forward purchases that otherwise would be made in 2018, a bank statement said. – TradeArabia News Service
ENBD 9-month net surges 15pc to $1.68bn
Hesham Abdulla Al Qassim and Shayne Nelson
&uuid=(email))