Emirates NBD (DFM: EmiratesNBD), a leading bank in the region, delivered a record set of results with net profit up 20% year-on-year to AED 10 billion. The Bank achieved another milestone as total assets surpassed AED 500 billion for the first time. Net interest income increased 19% year-on-year due to loan growth and an improvement in margins. The operating performance was also supported by a 22% year-on-year improvement in provisions. The Bank’s balance sheet remains healthy with a further strengthening in capital due to retained earnings, stable credit quality and liquidity. These results have enabled the Board of Directors to recommend a 2018 dividend of 40 fils per share.

Financial Highlights – FY 2018

• Net profit of AED 10 billion, up 20% y-o-y
• Net Interest Income increased 19% y-o-y on loan growth and an improvement in margins
• Net Interest Margin increased by 35 bps y-o-y to 2.82% helped by rate rises
• Total Income of AED 17.4 billion improved 13% y-o-y
• Total assets at AED 500.3 billion, up 6% from end 2017
• Customer loans at AED 327.9 billion, up 8% from end 2017
• Customer deposits at AED 347.9 billion, up 7% from end 2017
• Credit quality ratios stable with impaired loan ratio at 5.9% and coverage ratio at 127.3%
• Liquidity Coverage Ratio of 195.3% and AD ratio of 94.3% demonstrate the Group’s healthy liquidity position
• Capital Ratios strengthened with Common Equity Tier 1 Ratio improving to 16.6% and Capital Adequacy Ratio remained strong at 20.9%

Commenting on the Group’s performance, His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “2018 marked another successful year for Emirates NBD with strong income growth leading to a record high net profit. As a leading Bank in the UAE, we pledge our support and commitment to the 50-Year Charter and the Eight Principles of Dubai announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which highlight our wise leadership’s commitment to fair governance, economic diversification, and the  well-being of present and future generations. As the official banking partner for Expo 2020 Dubai we are focused on ensuring that banking services at the exhibition are at the forefront of innovation. In 2018, we dedicated our corporate social activities to the Year of Zayed and successfully exceeded our targets. 2019 marks the Year of Tolerance in the UAE and through our continuous investment in innovative assistive technologies, we aim not only to enhance the banking experience for people of determination, but also to empower them towards independence in their day-to-day lives. Emirates NBD’s commitment to people of determination supports the ‘My Community’ initiative launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council that aims to transform Dubai to a disability-friendly city by 2020. In light of the solid performance by the Bank, we are proposing a cash dividend at 40 fils per share.”

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: “Emirates NBD delivered an excellent performance in 2018, achieving a record annual net profit of AED 10 billion and total assets in excess of AED 500 billion. The Bank’s strong performance along with its digital focus were recognized when Emirates NBD was named the ‘Best Consumer Digital Bank’. Liv., the mobile only bank by Emirates NBD, was also named the ‘Most Innovative Digital Bank in the UAE’ for its lifestyle centred offering that has made it the bank of choice for the younger generation. We continued to expand the Bank’s international presence in 2018 by growing our branch network in the Kingdom of Saudi Arabia and Egypt. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”

Commenting on the Group’s performance, Group Chief Executive Officer, Shayne Nelson said:“Emirates NBD delivered a record performance in 2018 as net profit increased by 20% underpinned by higher income and a lower cost of risk. Margins widened 35 bps in 2018 as rate rises flowed through to the loan book which more than offset a rise in funding costs. The Group’s balance sheet remains healthy with a further strengthening in capital coupled with strong liquidity and stable credit quality. We made exciting progress in advancing our digital agenda and are pleased to be named The Innovator in the Middle East at the Global Finance 2018 Innovators Awards. As part of the Bank’s efforts to keep delivering new services and products, I am pleased that we have expanded our contactless payment facilities to include Google Pay as well as launching the Emirates NBD Skywards Savings Account and Visa Debit Card, the UAE’s first banking solution to earn Skywards Miles for spends linked to savings. Going forward, I am confident that Emirates NBD will continue to deliver excellent customer service and superior value to our shareholders.”