DUBAI 20 July 2017: Emirates NBD recorded half-year net profits of Dh3.9 billion, up 5 per cent on higher net interest income, lower expenses and lower provisions. Net interest income improved 2 per cent year-on-year due to loan growth and helped by a recent improvement in margins.
Net interest margin improved since the beginning of the year as loans reset at higher rates and funding costs improved as liquidity conditions eased. The operating performance was also supported by a control on expenses and lower provisions. The bank’s balance sheet continues to strengthen with further improvements in credit quality and capital, coupled with solid liquidity ratios, said Wam.
Hesham Abdulla Al Qassim, Vice-Chairman and Managing Director, Emirates NBD said: “It is extremely pleasing to report that Emirates NBD has achieved its highest ever net profit in the first half of 2017. We are honoured to be 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.”
Group Chief Executive Officer, Shayne Nelson said: “The group’s balance sheet continued to strengthen with improved capital and credit quality ratios and liquidity ratios were comfortably maintained within management’s target range. Last year we announced a major investment in our digital platform and we are pleased to unveil the next revamp of our award winning online portal.
“Last year we announced a major investment in our digital platform and we are pleased to unveil the next revamp of our award winning online portal which includes FaceBanking that will empower customers to talk to an advisor over a video call at a time and place of their choosing. We plan to continue our digital transformation program with a planned investment of Dh1 billion over the next three years.”
Group Chief Financial Officer, Surya Subramanian said: “The operating performance for the first half of 2017 was pleasing as we saw margins improve coupled with controlled loan growth. Non-interest income declined year-on-year due to the sale of investment securities in 2016 that were not repeated in the current year. Expenses remain firmly under control and provide headroom to invest for future growth.
We also delivered a further improvement in credit quality with the NPL ratio strengthening to 6.1% and this, coupled with an increase in margins and lower costs, is a position we expect to hold for the remainder of 2017.”
By Rajive Singh