Emirates NBD Surpasses AED 1 Trillion in Assets
Emirates NBD reports a 56% rise in profit before tax, reaching AED 7.8 billion, driven by strong loan growth and an improved deposit mix.
Summary
Emirates NBD has achieved a 56% increase in profit before tax, reaching AED 7.8 billion. The bank has surpassed AED 1 trillion in assets, driven by strong loan growth and a strategic focus on digital and regional expansion.
In a remarkable financial performance, Emirates NBD has reported a 56% rise in profit before tax, reaching AED 7.8 billion. This impressive growth is attributed to strong lending momentum, an improvement in deposit mix, and the introduction of new products. The bank's balance sheet has surpassed the AED 1 trillion milestone, bolstered by robust loan and deposit growth from a buoyant regional economy.
The first quarter of 2025 has been a landmark period for Emirates NBD, with deposits growing by 5% and a record AED 27 billion increase in low-cost Current and Savings Account balances. Loans grew by AED 18 billion, with over half of this increase sourced from the expanding international network. This highlights the bank's strategic focus on regional expansion and its ability to capitalize on a growing affluent population.
Emirates Islamic, a subsidiary of Emirates NBD, also achieved a significant milestone with its quarterly profit exceeding AED 1 billion for the first time. This underscores its position as a leading Islamic bank in the UAE and reflects the group's successful focus on Wealth Management and innovative products.
The group's strategic investments in its regional footprint, digital initiatives, and GenAI are generating substantial income, helping to offset the impact of lower interest rates. With a 3.5% loan growth in Q1 2025 and an improvement in the impaired loan ratio to 3.1%, Emirates NBD is well-positioned for continued success.
Given the bank's robust financial performance and strategic initiatives, investors may consider a 'buy' recommendation. The bank's focus on digital transformation, regional expansion, and wealth management positions it well for future growth.
Source
Summary
Emirates NBD reported a 56% increase in profit before tax, reaching AED 7.8 billion, driven by strong loan growth and an improved deposit mix, resulting in an 11% year-on-year income increase. The bank's assets exceeded AED 1 trillion, supported by significant loan and deposit growth in a robust regional economy. Deposits rose by 5%, with a record AED 27 billion increase in low-cost Current and Savings Accounts, while loans grew by AED 18 billion in the first quarter of 2025, with more than half from the international network. Emirates Islamic achieved quarterly profitability exceeding AED 1 billion for the first time, underscoring its position as a leading Islamic bank in the UAE. The growing affluent population in the region boosted Assets Under Management to USD 50 billion, highlighting Emirates NBD's focus on Wealth Management and new products. Strategic investments in the Group's regional presence, digital capabilities, and GenAI are contributing to income, mitigating the effects of lower interest rates. Key highlights for Q1 2025 include a 56% increase in profit before tax due to significant loan growth from regional expansion, a low-cost funding base, and strong transaction volumes. Total income rose by 5% to AED 11.9 billion. Loans grew by 3.5% in Q1 2025, with AED 18 billion in lending, and deposits increased by AED 31 billion, including a record AED 27 billion in Current and Savings Accounts. The impaired loan ratio improved to 3.1% due to impressive recoveries, and Emirates Islamic's quarterly profit exceeded AED 1 billion for the first time. Other financial metrics include a net profit of AED 6.2 billion, expenses of AED 3.7 billion, a net interest margin of 3.58%, a cost-to-income ratio of 30.9%, a non-performing loan ratio of 3.1%, and a CET-1 ratio of 14.7%.
