Emirates NBD (DFM: EmiratesNBD), a leading bank in the region, delivered a record set of results with net profit up 29% to AED 5.0 billion. Net interest income improved 20% y-o-y due to loan growth and a further improvement in margins. The operating performance was also supported by a 40% improvement in provisions. The Bank’s balance sheet remains solid with a further strengthening in capital due to retained earnings, coupled with stable liquidity and credit quality ratios.

Commenting on the Group’s performance, Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: “I am extremely proud that Emirates NBD has delivered another record net profit in the first half of 2018. Following the recent UAE Innovation Month, I am pleased that, in its first year of operation, Liv., the lifestyle digital bank for millennials, has attracted over one hundred thousand customers. Liv. is now the fastest growing digital bank in the UAE and 84% of customers are new to the Bank. Emirates NBD was named ‘Best Bank in the Middle East’ as well as ‘Best Bank in the United Arab Emirates’ for the fourth consecutive year at the Euromoney Awards for Excellence. The bank was lauded for its commitment to the digitisation of banking services within the region, having introduced several first-to-market digital banking solutions. We have enthusiastically embraced the Year of Zayed to honour the legacy of our nation’s founding father, with numerous CSR activities.”

Group Chief Executive Officer, Shayne Nelson said: “For the first time in the Group’s history, Emirates NBD delivered a half yearly net profit in excess of AED 5 billion underpinned by higher net interest income on the back of loan growth and improving margins and a lower cost of risk. The Bank’s balance sheet remains solid with a further strengthening in capital due to retained earnings, coupled with stable liquidity and credit quality ratios. Following the Bank’s announcement to enter into a definitive agreement to buy Sberbank’s 99.85% stake in Denizbank A.S., we were pleased that both Moody’s and Fitch affirmed the ratings and outlook of Emirates NBD.”

Group Chief Financial Officer, Surya Subramanian said: “The operating performance for the second quarter of 2018 was pleasing as we delivered a record quarterly net profit supported by growth in our core business. Margins improved 14 bps during the quarter as rate rises flowed through to the loan book and more than offset a modest increase in deposit costs. With CASA representing 54% of deposits, our book is positioned to benefit from further rate rises and, as a consequence, we have revised up margin guidance for this year. The cost to income ratio, at 31.3%, provides headroom to keep investing for future growth and further enhance our digital and technology capabilities.”