Emirates NBD profits soar; assets hit $100b
Net interest income for the year improved by 8% to Dh10.24b
Emirates NBD yesterday reported its fourth quarter and full year results with the bank’s profits beating market expectations.
Net profit for the full year was up 39 per cent to Dh7.1 billion compared to the previous year. For the fourth quarter of the year the bank reported net profit of Dh2.13 billion up 74 per cent year on year and 28 per cent quarter on quarter.
The strong performance was helped by income growth and a lower impairment charge. The board of directors has recommended an increase in the 2015 dividend to 40 fils from 35 fils per share.
Total income for the year ended December 31, 2015 amounted to Dh15.22 billion, up by 5 per cent compared with Dh14.44 billion in 2014.
“During the year, and for the first time in the bank’s history, total assets crossed the $100 billion mark, total income exceeded Dh15 billion and net profit surpassed Dh7 billion, further reinforcing Emirates NBD’s position of leadership in the region,” Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Emirates NBD said in a statement.
Net interest income for the year improved by 8 per cent to Dh10.24 billion while noninterest income grew 1 per cent in 2015 to Dh4.98 billion and the core fee income improved 14 per cent year on year.
“Net interest margin was flat on year on year basis; however, witnessed a 7 basis points quarter on quarter improvement as treasury was able to profitably deploy excess liquidity at attractive yields. This, coupled with a widening in deposit spreads, more than offset the impact of rising EIBOR (Emirates Interbank offered rates) rates on loan spreads. Furthermore, higher capital gains led to rise in noninterest income,” said Naveed Ahmed, Senior Manager, Research Group Global Investment House.