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July 19, 2017

Emirates NBD registers 5% rise in H1 net profit

Emirates NBD has reported a net profit of AED3.89bn ($1.05bn) for the first half of 2017, up 5% compared to AED3.72bn ($1bn) a year earlier.

The bank attributed the rise in net profit to asset growth, control on expenses and reduced provisions.

For the half year ended 30 June 2017, the banking group’s total income stood at AED7.5bn, down 3% compared to AED7.67bn in the same period of 2016.

Non-interest income slid 12% to AED2.27bn from AED2.57bn a year ago, while net interest income rose 2% year-on-year to AED5.18bn.

The bank’s capital adequacy ratio and tier 1 capital ratio at the end of 30 June 2017 were 20.7% and 18.3%, respectively.

The bank’s Retail Banking & Wealth Management (RBWM) unit posted total income of AED3.29bn for the first half of 2017, an increase of 9% compared to the year ago period. The bank said that the rise was driven by growth in net interest income from liabilities and growth in fee income from wealth, foreign exchange and cards business.

The unit’s fee income comprised 35% of revenue, the bank said in its earnings statement.

Emirates NBD group CEO Shayne Nelson said: “Despite some uncertain times Emirates NBD has delivered a record set of half-year results with net profits of AED 3.9 billion, up 5% year-on-year. During 2017 we have seen margins widen 20 bps as recent rate rises flowed through to loan pricing and funding costs improved as regional liquidity conditions eased. 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.”

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