Now Reading
Emirates NBD posts 39% rise in 2015 net profit on low impairment charges

Emirates NBD posts 39% rise in 2015 net profit on low impairment charges

The Dubai-based lender posted a 32 per cent drop in impairment charges

Dubai’s biggest bank Emirates NBD posted a 39 per cent year-on-year growth in net profit for 2015 to reach Dhs 7.1bn, it announced on Monday.

The lender attributed the profit boost to income growth, a modest increase in costs and a lower impairment charge.

Total income for the year grew by 5 per cent to Dhs 15.2bn with net interest income up 8 per cent.

The improvement in net interest income is attributable to an improved asset mix due to growth of Islamic and retail assets and a lower cost of deposits, the bank said in a statement.

Non-interest income was up 1 per cent in 2015 as core fee income growth was offset by lower gains from the sale of properties and investments.

Meanwhile costs also grew by 8 per cent in 2015 due to higher staff costs linked with rising business volumes. It was partially offset by a control on other costs, the lender said.

During 2015, the impaired loan ratio improved by 0.8 per cent to 7.1 per cent. The impairment charge of Dhs 3.4bn during the year was 32 per cent lower than in 2014.

“The cost of risk has fallen for the sixth consecutive quarter as we see it trend to more normal levels,” the bank said.

Loans increased by 10 per cent and deposits grew by 11 per cent during 2015. The bank also raised Dhs 10.6bn of term-funding last year with most of this issued in the first half of 2015 when “market conditions were receptive.”

As of December 31, 2015, the lender’s capital adequacy and Tier 1 capital ratios stood at 20.7 per cent and 18 per cent respectively.

The board has recommended an increase in the 2015 dividend to 40 fils from 35 fils per share.

Chairman of Emirates NBD Sheikh Ahmed Bin Saeed Al Maktoum said:During the year and for the first time in the bank’s history, total assets crossed the $100bn mark, total income exceeded Dhs 15bn and net profit surpassed Dhs 7bn, further reinforcing Emirates NBD’s position of leadership in the region. I am particularly pleased that Emirates NBD continued to achieve growth in revenue and net profit amid a challenging environment.”

Vice chairman Hesham Abdulla Al Qassim added: “We have also completed the integration of the Egypt business onto Emirates NBD’s systems platform which will enable us to expand our presence. The group is well positioned to continue to utilise our strong franchise and balance sheet to take advantage of growth opportunities in our preferred markets.”

The bank currently has operations in the United Arab Emirates, Egypt, Saudi Arabia, Singapore, the United Kingdom and representative offices in China, India and Indonesia.

© 2020 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top