Dubai's leading financial institution, Emirates NBD, revealed on Thursday a 12% surge in its half-yearly earnings, reaching an unprecedented Dh13.8 billion, fueled by enhanced lending activities within its regional network and significant recoveries from impaired loans. The bank highlighted that its quarterly earnings exceeded Dh7 billion for the first time, attributed to exceptional results from Emirates Islamic, improved margins at DenizBank, and substantial recoveries supported by a thriving economy.
Lending expanded by 6.0% during the first half of 2024, surpassing the Dh500 billion threshold due to robust regional demand. Shayne Nelson, the group CEO, noted that all divisions performed exceptionally well, achieving record retail lending, securing a third of the UAE's credit card spending, and increasing Assets Under Management by a remarkable 41% year-over-year.
Nelson also mentioned that Emirates Islamic recorded its highest-ever profit of Dh1.7 billion in the first half of 2024, as its balance sheet crossed the Dh100 billion mark. The retained earnings enhanced capital ratios and the robust balance sheet, combined with top-tier banking infrastructure, positions Emirates NBD as a leading force in the region for future growth.
Looking ahead, Emirates NBD is evolving into a data-centric, digital-oriented, and environmentally conscious regional leader. Patrick Sullivan, the group CFO, stated that the credit environment is robust, and clients are benefiting from a vibrant economy with ongoing normalization of loan repayments, resulting in a net impairment credit of Dh2.2 billion. The bank revised its loan growth guidance upwards due to strong regional demand and lowered its cost of risk guidance based on a healthy credit environment.
Despite the rise in the cost of wholesale funding and term deposits due to higher interest rates, net interest income remained strong at Dh1.4 billion. Corporate lending facilitated Dh48 billion in new gross loans, securing major deals across the network by leveraging the group's regional presence. Lending rose by a record Dh23 billion year-over-year, growing 21% to Dh130 billion, while deposits increased by Dh30 billion year-over-year with a healthy CASA to Deposits ratio of 75%. The bank maintained a third of the UAE's credit card spending, with card spending growing 15% year-over-year.
