The UAE’s leading bank Emirates NBD achieved a year-on-year increase of 15% in net profit to AED 2.7 billion during the first quarter of 2018, up 15% when compared to the fourth quarter of 2018.
Total income increased by 15% y-o-y to AED 4.7 billion in Q1-19 due to loan growth, an improvement in margins, and higher fee income.
Emirates NBD, listed on the Dubai Financial Market (DFM), said on Wednesday that total assets grew by 5% to AED 525.8 billion from the end of fiscal year 2018.
“In keeping with the ‘Year of Tolerance’ initiative, launched by His Highness Sheikh Khalifa bin Zayed Al Nahyan, Emirates NBD will continue to engage its customers and the community with innovative campaigns, programmes and initiatives that celebrate the nation’s unity and commitment to diversity,” vice chairman and managing director of Emirates NBD Hesham Abdulla Al Qassim commented.
Customer loans reached AED 337.7 billion, up 3% from the end of FY18, while customer deposits increased by 3% to AED 359.4 billion in Q1-19 when compared to the end of the past year, the bank said in a bourse filing to the DFM on Wednesday.
“Net interest margin improved 15 bps y-o-y to 2.83%, helped by rate rises,” Emirates NBD added.
Credit quality ratios were stable with impaired loan ratio at 5.9% and coverage ratio at 123.9%, liquidity coverage ratio was at 198.8% and AD ratio registered 94% demonstrate the banking group’s healthy liquidity position.
“Capital ratios strengthened with Common Equity Tier 1 ratio improving to 16.8%, Tier 1 ratio to 20.9% and capital adequacy ratio (CAR) to 22%,) according to the statement.
Group chief financial officer Surya Subramanian said: “The operating performance for the first quarter of 2019 was pleasing as we delivered growth in both net interest income and fee income. Costs improved by 7% from the previous quarter due to a reduction in staff costs, lower professional fees and marketing expenses. NIMs declined by 2bp during the quarter as the effect of higher wholesale funding and fixed deposit costs were largely offset by an improvement in loan yields and higher CASA balances.”