Emirates NBD reports 2017 Q3 financial results

Emirates NBD delivered a strong set of results with net profit up 15% to AED 6.17 billion for the first nine months of 2017. Net interest income improved 4% y-o-y due to loan growth and helped by a sustained improvement in margins. The operating performance was also supported by lower expenses and an improved cost of risk. The Bank’s balance sheet continues to strengthen with stable credit quality and further improvements in capital and liquidity.
 
Financial Highlights – Q3 2017 YTD
  • Net profit of AED 6.17 billion, up 15% y-o-y
  • Net Interest Income improved 4% y-o-y due to loan growth and a sustained improvement in margins
  • Net Interest Margin improved by 27 bps from 2.29% in Q4-16 to 2.56% in Q3-17, helped by rate rises and coupled with lower funding costs.
  • Total Income of AED 11.4 billion, up 1% y-o-y due to higher net interest income
  • Total assets at AED 461.1 billion, up 3% from end 2016
  • Customer loans at AED 304.1 billion, up 5% from end 2016
  • Customer deposits at AED 322.1 billion, up 4% from end 2016
  • Impaired Loan ratio steady at 6.1% whilst the Impaired Loan Coverage ratio strengthened to 124.9%.
  • Liquidity Coverage Ratio of 139.1% and AD ratio of 94.4% demonstrates healthy liquidity position
  • Tier 1 Capital Ratio strengthened to 18.8% and Capital Adequacy Ratio advanced to 21.2% with retained earnings
 
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: “I am very pleased that Emirates NBD has delivered a strong performance in the first nine months of 2017. Our strong financial and operating performance was recognized when Emirates NBD was named 'Banking Company of the Year' by Gulf Business for the second consecutive year. We continue to expand our international presence with our first branch in India which will enable us to better support our customers. Our 2017 CSR activities, embracing the Year of Giving, support various social and environmental opportunities which contribute to the communities we serve, including initiatives to help transform Dubai into one of the world’s most disability-friendly cities by 2020.”
 
Commenting on the Group’s performance, Group Chief Executive Officer, Shayne Nelson said: “Emirates NBD delivered a strong set of results with net profit of AED 6.17 billion for the first nine months of 2017, up 15% year-on-year. Margins have continued to improve throughout 2017, helped by rate rises and an improvement in funding costs. We are delighted to be recognized as the Most Innovative Financial Services Organization of the Year at the BAI Global Innovation Awards forum. Our planned AED 1 billion investment underlines our commitment to retain Emirates NBD's leadership position and to support the UAE as a driver of Digital innovation. We continue to extend our international branch network and, following 
Page 2 of 7 the opening of the branch in India, work continues on opening three more branches in the Kingdom of Saudi Arabia.”
 
Group Chief Financial Officer, Surya Subramanian said: “We achieved a record performance for the first nine months of 2017 as we delivered positive jaws with higher income and lower expenses. With CASA representing 57% of deposits, our book is positioned to benefit from expected rate rises. Expenses remain firmly under control and provide headroom to invest for future growth and to help deliver our digital aspirations. The Bank is well placed to meet various accounting and regulatory changes that take effect in 2018 and we do not expect any material impact as a result.” 
 
Re-disseminated by The Asian Banker
Diary of Activities
Beijing Innovation Tour
21 - 23 May 2018 | China
The Future of Finance Summit
23 - 25 May 2018 | China
Taiwan Awards Briefing & Lunch
28 June 2018 | Taiwan
Future of Finance Thailand 2018
19 July 2018 | Thailand
The Asian Banker Digital Finance Leadership Programme
23 - 27 July 2018 | United Kingdom