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Introducing Signature, a programme of distinction reserved for the upper crust of Emirates NBD
Our wealth solutions help you manage your financial future better and achieve your financial goals.
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We welcome you to a bespoke banking experience tailored to suit your private banking & wealth management needs, should you, your family, or your business have USD 5 Million (or currency equivalent) and above as Assets Under Management with us.
Start your banking journey with the leading bank in the region.
Find a suitable account and applyDiscover the benefits of being our customer by browsing through our banking packages.
Learn more about banking packagesLearn all about how to use your account's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
All our cards offer you an exciting range of rewards and benefits.
Find a suitable card and applyGet the most out of your credit card by exploring its different benefits.
Learn all about how to use your card's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
Here's how to make the most out of your loan with us.
Visit our dedicated support center for answers to all your banking-related questions.
Our various FX products and services help you conduct your international transactions easily.
Our wide range of transfer options make it easier for you to send money locally and internationally.
Learn all about how you can seamless use our services to transfer money.
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Know more about our Wealth servicesLife is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Access to over 11,000 stocks and ETFs in Global and UAE markets
Visit our dedicated support center for answers to all your banking-related questions.
Everyday banking is a lot easier with our digital banking platforms and services.
Discover more about banking with usWe have over 200 branches and 900 ATMs and CDMs across the UAE and overseas.
Learn more about our services and get the most out of your banking relationship with us.
Visit our dedicated support center for answers to all your banking-related questions.
Start your Priority Banking journey and live your success
Introducing Signature, a programme of distinction reserved for the upper crust of Emirates NBD
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Life is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Everyday banking is a lot easier with our digital banking platforms and services.
Learn more about our services and get the most out of your banking relationship with us.
We welcome you to a bespoke banking experience tailored to suit your private banking & wealth management needs, should you, your family, or your business have USD 5 Million (or currency equivalent) and above as Assets Under Management with us.
Dubai, 22 October 2014
Financial Highlights
Emirates NBD (DFM: EmiratesNBD), the largest bank in UAE by Total Income and branch network, delivered an impressive set of financial results with net profit up 51% year on year to AED 3,913 million. The strong operating performance was helped by all parts of the business delivering year-on-year revenue growth supported by strong economic growth in Dubai as SMEs and Trade Finance drive recovery.
Total Income for the first nine months of 2014 grew by 25% to AED 10.89 billion. Net interest income grew 19% as the Bank focused asset growth on higher margin Retail and Islamic products, whilst the Bank's liability profile improved thanks to current and saving account growth. Non-interest income grew 39% boosted by increased income from trade finance, foreign exchange and brokerage & asset management business as well as gains from the sale of investments and property.
Emirates NBD Asset Management delivered another milestone when Assets Under Management passed the 10 billion dirham mark. The bank continues to lead digital banking innovation with the launch of the e-IPO platform. Over 50% of customer subscriptions for the Emaar Malls IPO were received via the bank's ATM, online and mobile channels.
The Bank's Impaired Loan ratio improved by 1.3% in 2014 to 12.6% due to a significant increase in repayments and recoveries on the back of an improved economy. The Impaired Loan Coverage Ratio also improved significantly by 12.8% to 70.3% in 2014.
Group Chief Executive Officer, Emirates NBD, Shayne Nelson, said: "During the first nine months of 2014, we have delivered another healthy set of results, with net profit up by 51% to AED 3.91 billion. This is driven by strong growth in both net interest income and non-interest income. It is very pleasing that each part of the business was able to deliver year-on-year revenue growth. The balance sheet continues to strengthen as we see a significant improvement in the capital ratios, the Impaired Loan ratio and coverage ratios. I am confident that the Bank will continue to deliver excellent service to our customers and superior value to our shareholders."
Group Chief Financial Officer, Emirates NBD, Surya Subramanian, said: "The Bank has continued to deliver strong levels of operating profitability which is evident from the growth in both total income and pre-provision operating profit. Despite a competitive environment we have been able to widen margins helped by growth in higher margin Retail and Islamic products, a more efficient funding and capital base and contribution from our Egyptian business. Costs remain firmly under control with a cost-to-income ratio of 29.5% for the first 9 months on 2014, 4.6% lower than the comparable period in 2013."
Financial Review
Total income for nine months ended 30 September 2014 amounted to AED 10,887 million; an increase of 25% compared with AED 8,695 million during same period in 2013.
Net interest income for the period improved by 19% to AED 7,024 million from AED 5,915 million during the comparable period in the previous year. The improvement in net interest income is attributable to an improved asset mix due to retail and Islamic growth, a lower cost of funds helped by both CASA growth and the full repayment of relatively expensive Ministry of Finance Tier 2 deposits as well as a contribution from our Egyptian business.
Non-interest income for the period improved by 39% to AED 3,863 million from the previous year, driven primarily by increases in trade finance and foreign exchange income, brokerage & asset management fees and gains from the sale of investments and property.
Costs for nine months ended 30 September 2014 amounted to AED 3,212 million, an increase of 8% over the same period in the previous year. Excluding Egypt, costs were up 4% y-o-y. This increase is due to staff and occupancy costs linked with rising business volumes and partially offset by a control of professional fees and marketing costs. The cost to income ratio improved by 4.6% y-o-y to 29.5%, as improving top line momentum more than offset the increase in costs base. Excluding one-offs, the cost to income ratio would have been 31.6%.
The Impaired Loan ratio improved to end the period at 12.6% as net impaired loans decreased by AED 1.4 billion due to a sharp rise in repayments and recoveries on the back of an improved economy. The impairment charge for first nine months of 2014 increased to AED 3,831 million, compared with AED 3,400 million in the previous year. This was primarily driven by continued conservative provisioning on the Corporate and Islamic financing portfolios, which helped boost the coverage ratio to 70.3% in Q3 2014, an increase of 12.8% during 2014.
Net profit for the Group was AED 3,913 million for nine months ended 30 September 2014, 51% above the profit posted during the same period in 2013 . The increase in net profits was driven by net interest income and non-interest income both outpacing the expense growth.
Deposits increased by 4% and regular customer loans increased by 2% from the end of 2013. The quarter end also saw a temporary buildup of assets to finance a recent IPO which added another 2% to Customer loans. Advances to Deposits Ratio is reported at 99.2% compared to 99.5% at the end of 2013.
As at 30 September 2014, the Bank's total capital adequacy ratio and Tier 1 capital ratio were 20.4% and 17.2% respectively. The 1.9% improvement in the Tier 1 ratio is due to retained profit coupled with a $500 million Tier 1 issue. Total Capital Adequacy ratio grew at a more modest 0.8% as the entire Ministry of Finance Tier 2 deposits, received during the crisis era, were fully repaid.
Business Performance
Retail Banking & Wealth Management (RBWM)
The bank's Retail Banking and Wealth Management division recorded a robust performance with income reaching AED 4,204 million, a growth of 9% for the nine months ended 30 September 2014.
Net interest income increased by 3% while fee income grew by an impressive 24% driven by a focus on offering tailored wealth solutions to the high net worth and affluent customers. In addition, the division continued its strong momentum in gathering low cost liabilities growth, resulting in an increase in customer deposits by 9% over the nine month period to reach AED 110.5 billion and gaining market share.
RBWM's strategy of effective customer acquisition is bearing strong results with higher revenues per customer, lower provisions and better product penetration levels. The bank has entered into a preferred partnership with MetLife to provide comprehensive savings and insurance solutions to retail customers. The cards business continued to grow strongly led by innovative products and valuable usage programs. Auto loan business during Ramadan was strong supported by promotional programs with automobile manufacturers and dealers.
Our best-in-class online and mobile banking solutions have been instrumental in dealing with higher volumes of routine transactions resulting in improved customer experience and lower operational costs. The bank continues to lead digital banking innovation with the launch of the e-IPO platform, a first in the region. Over 50% of the recent Emaar Malls IPO subscriptions from the bank's customers were received via the bank's ATM, online and mobile channels.
Emirates NBD Private Banking showed strong growth from its core segments across the UAE, Saudi Arabia, Singapore and UK. Emirates NBD Asset Management continued to deliver exceptional results compared to last year and recently passed a milestone with over AED 10 billion under management.
Wholesale Banking (WB)
Wholesale Banking delivered a strong performance for the period ended 30 September 2014 with operating income at AED 3.73 billion, up 13% compared with the corresponding period in 2013.
For the first nine months of 2014, Net interest income of AED 2.77 billion was higher by 17% due to a combination of asset growth and conscious efforts to provide longer term financing.
Fee income increased by 3% to AED 959 million thanks to strong performances in foreign exchange and Investment Banking businesses.
During 2014 Emirates NBD Capital Ltd has acted as joint lead arranger and bookrunner for loan syndication and capital market transactions totaling USD 7.1 billion. As at the end of September 2014, Emirates NBD was in the top 3 arrangers of US dollar denominated sukuk globally. Emirates NBD Capital Ltd has also been active in the Equity Capital Markets, acting as bookrunner for the recent AED 5.8 billion Emaar Malls IPO and the US$ 201 million Emirates REIT IPO.
Global Markets & Treasury (GMT)
GMT reported a 104% increase in total income of AED 676 million for the nine month period ended 30 September 2014.
The strong performance is primarily due to an increase in Net Interest Income from effective balance sheet positioning & hedging. The Investment and Credit Trading desks delivered strong performances in spite of market volatility caused by geopolitical challenges.
Revenue from Foreign exchange and fixed income sales were also higher in the first nine months of 2014 as the Treasury Sales team continues to deliver improved results.
Global Funding issued $500m Tier 1 capital in September 2014 following the repayment of the remaining MOF Tier 2 deposits in July, further strengthening the capital base. Emirates NBD is the first Middle East based institution to issue a public note in the New Zealand Dollar market, representing the cheapest 5-year funding raised by Emirates NBD in the last 6 years.
Emirates Islamic (EI)
EI continued to deliver healthy performance with total income (net of customers' share of profit) increasing by 27% to AED 1.41 billion from the comparable previous period in 2013. Financing and investing receivables grew by 17% to AED 25.3 billion from the end of 2013. The bank also expanded its branch and ATM/CDM network in Q3-14.
EI's net profits grew by 83% to AED 116 million for the first nine months of 2014 reflecting EI's success in attracting new customers.
EI's focus in 2014 has been on growing the SME portfolio supported by an increased product offering. The Bank's success continued to be recognized across the industry, with EI winning Best Premium Islamic Card and Best Self Employed Finance at the CPI Financial in 2014.
Outlook
The UAE remains well-positioned to enjoy solid growth in 2014 driven primarily by an expansion in non-oil sectors, particularly tourism, retail and manufacturing. We believe the construction sector will contribute more significantly to GDP growth this year as the recovery in real estate prices encourages new development. Following a boost to oil production in excess of 4% in 2013, we expect growth in the hydrocarbon sector to slow this year. Against an improving global economic backdrop, the Bank forecasts 2014 GDP growth of 5% in the UAE and Dubai. The Bank will continue to implement its successful strategy and take advantage of the positive growth opportunity in Dubai and the region. This strategy is built around five core building blocks which include delivering excellent customer experience, building a high performance organisation, driving core businesses, running an efficient organisation and diversifying sources of income.
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