Dubai’s biggest bank Emirates NBD posted a 63 per cent net profit surge to AED 12.5 billion in the last nine months. The results include a AED 4.4 billion impact from the Network International transaction.
Emirates NBD (DFM: EmiratesNBD), delivered a strong set of results with net profit up 63% y-o-y to AED 12.5 billion. The results include a AED 4.4 billion impact from the Network International transaction. Read more:https://t.co/9uRvFUF049 pic.twitter.com/WiT5bEd6pl
— Emirates NBD (@EmiratesNBD_AE) October 28, 2019
The Emirates NBD has appointed Patrick Sullivan as Group Chief Financial Officer. He replaces Surya Subramanian, who had a nine-year stint with the group.
Post DenizBank acquisition, the bank’s core operating profit grew 5% year-on-year (y-o-y), supported by a 17% increase in net interest income on loan growth and a 31% increase in non-interest income from higher foreign exchange and credit card income.
The group acquired 99.85% shares in DenizBank – the fifth largest private bank in Turkey with assets of AED 133 billion – in July this year for a total consideration of USD 2.7 billion.
Read: Dubai’s Biggest Bank Emirates NBD Plans $1.76 Billion Rights Share Sale
The group’s net profit of AED 12,483 million in the first nine months of 2019 is 63% above that posted in 2018. The results include a gain of AED 4,389 million on the partial disposal of Network International shares and a fair value measurement of the remaining stake. Core Operating Profit grew 5% y-o-y, supported by strong asset growth and higher fee income.
The Network International is the biggest payment-solution firm in the Middle East and Africa region. It is co-owned by Emirates NBD, Warburg Pincus and General Atlantic.
Emirates NBD Financial Highlights: Q3 2019
- Net profit of AED 12.5 billion, up 63% y-o-y, or 3% excluding DenizBank and the impact of the Network International transaction
- Total Income of AED 15.5 billion improved 20% y-o-y due to loan growth and higher fee income
- Impairment charge increased 149% y-o-y with cost of risk increasing to an annualised 103 bps due to the inclusion of DenizBank and lower writebacks and recoveries
- Net Interest Margin improved 1 bp y-o-y to 2.82% helped by the positive impact of DenizBank
- Total assets grew 35% to AED 675.6 billion during 2019 with the inclusion of DenizBank
- Customer loans advanced 31% to AED 429.7 billion during 2019 with the inclusion of DenizBank
- Customer deposits increased 35% to AED 468.2 billion during 2019 with the inclusion of DenizBank
- Impaired loan ratio improved to 4.8% on a larger balance sheet with strong coverage ratio of 126.6%
- Liquidity Coverage Ratio of 149.3% and AD ratio of 91.8% demonstrate the Group’s healthy liquidity position
- Common Equity Tier 1 ratio declined by 3.7% to 13.7% during 2019 with the rights issue expected to boost capital ratios by 1.5%.
Read: ADCB to exit Qatar, Kuwait & India markets, posts net profit of AED 4.196 bn
“Emirates NBD delivered a strong set of results in the first nine months of 2019. The Bank successfully completed the acquisition of DenizBank in the third quarter of 2019. This represents a significant milestone for Emirates NBD, expanding our presence to 13 countries and establishing Emirates NBD as a leading Bank in the MENAT region with over 14 million customers,” said Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD.
