The first half of 2024 showed great promise for Emirated NBD, which delivered a record profit of AED 13.8 billion. The bank credits increased lending across its regional network and substantial impaired loan recoveries for these profit projections. The Dubai government-owned bank saw an uptick of 12% in profit in the first half of 2024, earning a total income of AED 21.4 billion on string loan growth across all business segments coupled with an excellent stable, low-cost funding mix.
Key highlights from Emirates NBD feature the implementation of generative AI across business operations in partnership with Microsoft, alongside continued growth in SWIFT for corporate solutions, with 120 active clients facilitating over AED 100 billion in transactions. “Quarterly profit surpassed AED 7 billion for the first time ever, helped by the strongest ever results from Emirates Islamic, improving margins in DenizBank, and sizeable recoveries bolstered by a buoyant economy,” said Shayne Nelson, Group Chief Executive Officer of Emirates NBD. The government-owned bank boasted AED 1.7 billion in generated profits from Emirates Islamic, thereby pushing the bank’s balance sheet beyond the AED 100 billion landmark.
The official announcement spotlighted Emirates NBD’s consistent lending streak, as lending in the region grew by 6% and surpassed the half-trillion dirham milestone on strong regional demand.
Patrick Sullivan, Group Chief Financial Officer at Emirates NBD, stated, “The Group’s net interest margin improved to 3.65% in the second quarter of 2024 as DenizBank NIMs increased on favorable loan pricing and stable funding costs.” Sullivan also drew attention to the region’s “buoyant economy and healthy credit environment,” contributing to a “net impairment credit of AED 2.2 billion.” The group’s exceptional performance and strong balance sheet were recognized by Moody’s, which improved Emirates NBD’s credit rating outlook to Positive.
UAE Banking Sector Transfers Exceed AED6 Trillion Jan-Apr 2024
