Loan growth pushes Emirates NBD profit up 12% to $4bn

Reuters/Satish Kumar

• Lending grows 6% year on year
• Corporate lending hits AED48bn
• Deposits up 12% to AED624bn

Emirates NBD, Dubai’s biggest bank, reported a 12 percent year-on-year increase in net profit to AED13.8 billion ($3.8 billion), driven by increased lending and higher impaired loan recoveries.

Total income reached AED21.4 billion after strong loan growth across all business segments coupled with a stable, low-cost funding mix.

Lending grew 6 percent year on year in the first six months to exceed AED500 billion ($136 billion), with strong regional demand.

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The retail segment captured a third of the market share of UAE credit card spending. Assets under management rose 41 percent year on year.

Corporate lending reached AED48 billion in gross new loans, with mega deals across its regional network, Emirates NBD said.

Deposits rose 12 percent in the year to June 30, 2024, to AED624 billion, split equally between current and savings accounts and fixed deposits.

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Total assets jumped 15 percent to AED931 billion as of June 30, 2024, from AED811 billion a year earlier.

Quarterly profit reached a new high of AED7.1 billion, up 13 percent annually, thanks to Emirates Islamic’s strongest-ever results, improving margins in Turkey’s DenizBank and sizeable recoveries bolstered by a buoyant economy.

Patrick Sullivan, Emirates NBD’s group chief financial officer, said the net interest margin improved to 3.7 percent in the second quarter of 2024 as DenizBank’s net interest margins increased thanks to favourable loan pricing and stable funding costs.

The credit environment remains healthy and clients continue to benefit from a buoyant economy with further regularisation of loan payments, Emirates NBD said.

The bank revised upward its loan growth guidance, based on strong regional demand, while the cost of risk guidance was revised downwards, based on a healthy credit environment.

In its regional outlook, Emirates NBD said the non-oil sectors in UAE and Saudi Arabia will continue to register healthy growth, offsetting lower hydrocarbon production.

The non-oil growth is underpinned by strong infrastructure investment from both the private and public sectors, with a substantial pipeline of new projects in both countries, the bank said.