Emirates NBD Achieves Record AED 13.8 Billion Profit in H1-24 Amidst Strong Lending Growth
Emirates NBD PJSC has reported a record-breaking profit for the first half of 2024, driven by increased lending and substantial loan recoveries.
Summary
Emirates NBD PJSC has delivered a record profit of AED 13.8 billion in H1-24, with significant growth in lending and asset management. The bank's robust performance across all business units and a strong balance sheet position it well for future growth.
Emirates NBD PJSC, one of the leading financial institutions in the United Arab Emirates, has announced a record-breaking profit of AED 13.8 billion for the first half of 2024. This impressive 12% year-on-year growth is attributed to increased lending across its regional network and substantial recoveries of impaired loans.
The bank's quarterly profit also reached a new high, topping AED 7 billion for the first time. This was significantly bolstered by the strongest ever results from Emirates Islamic, improved margins in DenizBank, and sizeable recoveries, all underpinned by a buoyant economy.
Emirates NBD's lending activities saw a 6% increase in the first half of 2024, surpassing the AED 500 billion milestone. This growth was driven by strong regional demand, with corporate lending originating AED 48 billion of gross new loans, securing landmark deals across the network. The bank's market-leading infrastructure and regional presence have been instrumental in achieving these results.
The bank's performance across all business units has been outstanding, with record retail lending and a one-third market share of UAE credit card spend. Additionally, the Group's Assets Under Management grew by an astonishing 41% year-on-year.
Other key highlights from the first half of 2024 include:
- Total income increased to AED 21.4 billion, driven by strong loan growth and an excellent stable, low-cost funding mix.
- The deposit mix grew by AED 39 billion in the first half, evenly split between Current & Savings Accounts and Fixed Deposits.
- Net interest margin improved to 3.65% in Q2-24, with DenizBank's NIMs benefiting from favourable loan pricing and stable funding costs.
- Impairment credit of AED 2.2 billion due to regularisation of loan payments, with the impaired loan ratio improving to 4.2%.
- Emirates Islamic delivered a record profit of AED 1.7 billion in H1-24, with its balance sheet surpassing AED 100 billion.
- Earnings per share increased significantly by 13% to 214 fils in the first half of 2024.
Given the bank's strong financial performance, robust balance sheet, and strategic regional presence, Emirates NBD is well-positioned to drive future growth. The bank's continued focus on expanding its lending activities, coupled with its market-leading infrastructure, makes it a compelling investment opportunity.
Investors looking for a stable and growing financial institution in the UAE should consider Emirates NBD as a buy. The bank's impressive results and strategic initiatives indicate a promising outlook for the future.
Source
Summary
Emirates NBD reported a record profit of AED 13.8 billion in the first half of 2024, a 12% increase year-on-year, driven by strong lending growth and substantial impaired loan recoveries. The bank's lending grew by 6%, surpassing AED 500 billion for the first time. All business units performed exceptionally well, with significant achievements in retail lending, UAE credit card market share, and a 41% year-on-year increase in Assets Under Management. Corporate lending originated AED 48 billion in new loans, contributing to the bank's robust capital ratios and solid balance sheet. Key highlights include a total income of AED 21.4 billion, a 3.65% net interest margin, and record profits from Emirates Islamic. Earnings per share rose by 13% to 214 fils.
