Emirates NBD's Record Profit and Strategic Growth
Emirates NBD PJSC reports a remarkable 15% increase in profit before tax, reaching AED 27.1 billion in 2024, driven by strategic expansions and digital investments.
Summary
Emirates NBD achieved record profits in 2024, driven by strategic expansions, digital banking investments, and robust loan growth. The bank's diversified services and regional expansion, particularly in Saudi Arabia, contributed to its impressive financial performance.
Emirates NBD PJSC, a leading financial institution in the United Arab Emirates, has reported a stellar financial performance for the year 2024. The bank's profit before tax surged by 15%, reaching a record AED 27.1 billion. This impressive growth is attributed to the bank's strategic regional expansion and the enhancement of its Wealth Management franchise.
The bank's total income rose to over AED 44 billion, fueled by strategic investments in digital banking and an extensive branch network. This move has generated significant new revenue streams, showcasing the bank's adaptability and forward-thinking approach in a rapidly evolving financial landscape.
Emirates NBD's various business units have all contributed to this outstanding performance. The bank provided AED 160 billion in new loans to customers, driving a remarkable 16% increase in assets. Notably, Emirates NBD has maintained a one-third market share of UAE credit cards, underscoring its dominance in the region.
Emirates NBD Capital, the bank's investment arm, has also had a record-breaking year. As the leading investment bank for UAE IPOs, it generated its highest-ever revenue during its busiest year for transactions. Meanwhile, Emirates Islamic, a subsidiary of Emirates NBD, reported a record profit of AED 2.8 billion, establishing itself as a powerhouse in Islamic banking within the UAE.
The bank's expansion into the Kingdom of Saudi Arabia has been particularly fruitful, with its loan book growing by an impressive 57% in 2024. This regional expansion is a testament to Emirates NBD's strategic foresight and its commitment to tapping into new markets.
In light of the bank's excellent performance, the Board of Directors has proposed a substantial ordinary dividend of 100 fils. This move reflects the bank's robust financial health and its commitment to delivering value to its shareholders.
Looking ahead, Emirates NBD's strategic investments and regional expansions position it well for continued growth. However, given the current market conditions and the bank's already high valuation, it may be prudent for investors to hold their positions and monitor future developments closely.
Source
Summary
In 2024, Emirates NBD achieved a record profit before tax of AED 27.1 billion, marking a 15% increase. The growth was driven by the expansion of its regional presence and enhancement of its Wealth Management franchise. The bank's income rose to over AED 44 billion, bolstered by strategic investments in digital banking and branch networks, resulting in significant new revenue streams. The bank provided AED 160 billion in new loans, increasing assets by 16% and maintaining a one-third market share of UAE credit cards. Emirates NBD Capital reported its highest-ever revenue during a busy year for transactions, while Emirates Islamic recorded a profit of AED 2.8 billion, solidifying its position in the Islamic banking sector. The bank's branch expansion in Saudi Arabia led to a 57% growth in its loan book. The Board of Directors proposed a 100 fils dividend in response to the strong performance. Key highlights for 2024 included a 15% increase in profit before tax due to significant loan growth, a low-cost funding base, strong transaction volumes, and substantial recoveries. Profit after tax rose by 7% to AED 23 billion. Total income reached AED 44.1 billion, supported by strong loan growth and a stable, low-cost funding mix. The bank experienced a 10% loan growth, with AED 88 billion in new corporate lending and a 30% increase in retail lending. Deposits grew by AED 82 billion, with a notable increase in Current & Savings Accounts. The impairment charge was AED 0.1 billion, with a record low cost of risk, and the impaired loan ratio improved to 3.3%. Emirates Islamic's record profit was driven by a 31% growth in customer financing. Earnings per share increased by 7% to 356 fils.
Summary
The Zakat for Emirates NBD shareholders for the year ending December 31, 2024, can be calculated using two methods. The first method applies to shares bought for trading purposes, where the Zakat per share is calculated by adding the share's quoted value (AED 21.45) and cash dividends (AED 1.0), resulting in a Zakat pool per share of AED 22.45. The Zakat per share is then AED 0.5786, from which AED 0.0024 (Zakat on reserves and retained earnings per share, already paid by the bank) is subtracted, resulting in a net Zakat per share of AED 0.5762. The total Zakat payable is the number of shares multiplied by the net Zakat per share. The Zakat rate is 2.5775% for the Gregorian year and 2.5% for the Hijri year, accounting for the eleven-day difference between the calendars. The second method is for shares bought for acquisition, where Zakat is calculated as 10% of the total dividends per share for the year, amounting to AED 0.10 per share.
