Emirates NBD, a leading bank in the region, delivered a strong set of results with net profit up 44% y-o-y to AED 14.5 billion. Net interest income increased 26% due to loan growth and non-interest income grew 38% due to higher foreign exchange and credit card related income. Core operating profit grew 4% y-o-y helped by the inclusion of DenizBank. The Bank's balance sheet remains strong with healthy liquidity and stable credit quality. The common equity tier 1 ratio settled at 15.3% following a successful rights issue in November 2019

Financial Highlights – FY 2019

• Net profit of AED 14.5 billion, up 44% y-o-y, or increased 1% excluding the impact of the Network International transaction
• Total income of AED 22.4 billion improved 29% y-o-y due to loan growth and higher fee income
• Impairment allowances increased 176% y-o-y with net cost of risk increasing to 117 bps including DenizBank, higher charges and lower writebacks and recoveries
• Net interest margin improved 7 bps y-o-y to 2.89% helped by the positive impact of DenizBank
• Total assets grew 37% to AED 683 billion during 2019 including DenizBank
• Customer loans increased 33% to AED 437 billion during 2019 including DenizBank
• Customer deposits increased 36% to AED 472 billion during 2019 including DenizBank
• Impaired loan ratio at 5.6% and coverage ratio of 112.3%
• Liquidity coverage ratio of 160% and advances to deposits ratio of 92.6% demonstrate the Bank’s healthy liquidity position
• Common equity tier 1 ratio of 15.3% and capital adequacy ratio of 18.5% well above minimum requirements  

Commenting on the Bank's performance, His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: "2019 was a momentous year for Emirates NBD leading to a strong net profit. The underlying performance, coupled with strategic initiatives, helped Emirates NBD generate significant shareholder value. The outstanding success of the Rights Issue underlines the confidence of local and international investors in the Bank's business model and promising outlook. As the official banking partner of Expo 2020 Dubai, we are excited and honoured to be associated with the World's Greatest Show and look forward to creating a strong social and economic legacy. In 2019, we dedicated our corporate social activities to the 'Year of Tolerance' through continuous efforts to support People of Determination. As 2020 marks the 'Year of Getting Ready for the UAE's 50th Anniversary', we will channel our efforts to help design the future for the generations to come in the next fifty years."

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD said: "Emirates NBD delivered a strong set of results in 2019, achieving a record net profit of AED 14.5 billion and total assets in excess of AED 683 billion. We are delighted to welcome DenizBank into the Emirates NBD family during 2019, increasing the Bank's presence to 13 countries, servicing over 14 million customers in the MENAT region. In 2019 the Bank raised its Foreign Ownership Limit to 20% and signalled its intention to further increase the limit to 40% in due course. This supports the vision and goals of the country's leadership to make the UAE the region's most attractive economy for foreign direct investment. Disability friendly access was extended and now covers about half of the Bank's UAE network. Liv., the lifestyle digital bank for millennials achieved another milestone, reaching a base of 350,000 customers. Our aim for 2020 is to ensure that all our technology enhancements increasingly translate into seamless, innovative financial services for our customers."

Commenting on the Bank's performance, Shayne Nelson, Group Chief Executive Officer said: "Emirates NBD delivered a strong performance in 2019 as net profit increased by 44% to AED 14.5 billion. Core operating profit rose 4% as higher income more than offset a rise in expenses and provisions. The Bank's balance sheet remains healthy and the acquisition of DenizBank helped grow total assets by 37% to AED 683 billion. NIMs improved 7 bps y-o-y to 2.89%, helped by our expansion into Turkey, whilst the cost to income ratio at 32.1% remains within guidance. Emirates NBD is honoured to be named 'Bank of the Year – UAE 2019' for the fourth time by The Banker. We have completed the third chapter of our AED 1 billion digital transformation and will conclude the final phase ahead of the UAE's 50th anniversary. I am confident that we will continue to deliver excellent customer service and superior value to our shareholders while taking advantage of growth opportunities across our regional footprint."