Dubai (Etihad)
Emirates NBD’s semi-annual profit increased by 11%, to AED5.3 billion, the highest semi-annual profit since 2019.
The bank’s net profit in the second quarter of this year rose by 42 percent, driven by higher revenues and lower impairment provisions.
The bank said in its statement to the Dubai Financial Market, yesterday, that its net profit amounted to 3.5 billion dirhams, in the second quarter of the year, compared to 2.46 billion dirhams in the same period last year, while the bank’s net interest income increased by 27 percent in the second quarter based on annually, due to higher interest rates.
Hisham Abdullah Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, said: “Emirates NBD profits increased by 42% compared to the same period in the previous year, reaching 3.5 billion dirhams in the second quarter of 2022, which reflects the strength of the economic recovery. regional and diversified sources of income for the group.
He added: “Emirates NBD is proud of its pioneering role in the IPO process for DEWA and TECOM, providing customers with a comprehensive digital platform, from registration and subscription to making payments. We were pleased to have Moody’s upgrade Emirates NBD’s short and long-term credit ratings, in recognition of the financial group’s resilient capabilities and increased diversification during the post-pandemic phase.”
For his part, Shane Nelson, Group Chief Executive Officer, said: “Emirates NBD achieved strong results, which appeared through an increase in total income by 23% to reach 14.2 billion dirhams, due to the improvement in loans and the mix of deposits, while the increase in interest rates had a clear impact on Margins improved. International operations contributed 41% of total income in the first half of 2022.”
He added: “New loans increased significantly to reflect a record performance in the first half in terms of individual loans and renewed demand for corporate loans. Impairment provisions decreased significantly by 28% compared to the same period of the previous year, which reflects the improvement in the operating environment.”
Patrick Sullivan, Group Chief Financial Officer, said: “We have been able to maintain healthy income growth momentum, maintain strict control over expenditures, and have seen a steady decrease in the cost of risk. The net profit increased by 11% compared to the same period of the previous year to reach 5.3 billion dirhams, which allows absorbing the impact of inflation in Turkey.”
He added, “The UAE banking sector continues to benefit from ample liquidity, supported by high oil prices. In the first half of 2022, our current and savings account balances also grew by 10 billion dirhams, enabling the group to benefit from higher interest rates. In light of the expected further rise in interest rates, along with improved margins at DenizBank, we were able to raise our indicative net interest margin by 50 basis points.”
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