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Emirates NBD (DFM: EmiratesNBD), a leading bank in the region, delivered a strong set of results with record net profit of AED 8.35 billion in 2017, up 15% y-o-y. Net interest income improved 7% y-o-y due to loan growth and the positive impact of recent rate rises. The operating performance was also supported by higher non-interest income, lower expenses and an improved cost of risk. The Bank’s balance sheet continues to strengthen with further improvements in capital and liquidity and stable credit quality. These results have enabled the Board of Directors to recommend a 2017 dividend of 40 fils per share.
Financial Highlights – FY 2017
Net profit of AED 8.35 billion, up 15% y-o-y
Net Interest Income improved 7% y-o-y due to loan growth and the positive impact of recent rate rises
Net Interest Margin improved by 22 bps to 2.51% in Q4-17 from 2.29% in Q4-16, helped by rate rises and improved funding costs
Total Income of AED 15.5 billion, up 5% y-o-y
Total assets at AED 470.4 billion, up 5% from end 2016
Customer loans at AED 304.1 billion, up 5% from end 2016
Customer deposits at AED 326.5 billion, up 5% from end 2016
Credit quality ratios stable with Impaired Loan ratio at 6.2% and Coverage ratio at 124.5%
Liquidity Coverage Ratio of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position
Tier 1 Capital Ratio increased to 19.5% and Capital Adequacy Ratio advanced to 21.9% with retained earnings
Commenting on the Group’s performance, His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “2017 marked a successful year for Emirates NBD as we achieved a record annual net profit. We continued to advance Emirates NBD’s digital capabilities and are honored to be named the Official Banking Partner for Expo 2020 Dubai where we will play a key role in ensuring that banking services at Expo 2020 Dubai are at the forefront of innovation. As a homegrown bank, we are proud to have dedicated our 2017 Corporate Social Responsibility activities to the UAE’s Year of Giving initiative and successfully exceeded our targets. In 2018, we will align our CSR activities and strategy to the Year of Zayed initiative to honor the legacy of our nation’s founding father. As a leading bank in the region and a front-runner in digital banking innovation with a strong balance sheet, we are well placed to take advantage of growth opportunities in our preferred markets. 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 2017, achieving a record annual net profit of AED 8.35 billion. The Bank’s strong financial and operating performance, along with its digital focus, were also recognized when Emirates NBD was named The Banker’s ‘Bank of the Year – UAE’ for the third consecutive year. We opened our first branch in India and will continue to expand the Bank’s international presence in 2018, by growing our branch network in Egypt and Saudi Arabia and opening a representative office in Turkey, to better support our customer network. 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 2017 as net profit increased by 15% to reach a new high of AED 8.35 billion, underpinned by higher income, a control on expenses and a lower cost of risk. Margins widened 22 bps in 2017, helped by rate rises and improved funding costs. The Group’s balance sheet continued to strengthen, with further improvements in capital and liquidity and a stable credit quality profile. We made good progress in advancing our digital agenda and are pleased to be named Most Innovative Financial Services Organization of the Year at the BAI Global Innovations Awards forum. As part of the Bank’s efforts to drive further innovation, I am delighted to announce our partnership with Motive Partners to launch Motive Labs, an innovation and investment accelerator to pioneer digital transformation across the financial services industry. Going forward, I am confident that Emirates NBD will continue to deliver excellent customer service and superior value to our shareholders.”
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