Supported by improved economic conditions and the contribution of Denizbank in adding diversified income

Emirates NBD's net profit of AED 2.3 billion during the first quarter

  • Balances of checking and saving accounts in the bank rose by 16 billion dirhams.

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  • Hisham Al-Qassem: “The bank’s high profits reflect its flexibility in adapting to the emerging circumstances and the gradual economic recovery.”

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Emirates NBD achieved a net profit of 2.3 billion dirhams during the first quarter of this year, an increase of 12% compared to the same period last year, and an increase of 76% compared to the previous quarter, due to the improvement in economic conditions, and the contribution of Denizbank in Adding an impressive array of miscellaneous income to the group.

In a statement yesterday, announcing its financial results for the first quarter of 2021, the bank indicated that total income increased by 25% compared to the previous quarter, to reach 6.2 billion dirhams, as a result of the remarkable recovery of unfunded income and the increase in net interest income given that the net margin Interest has successfully absorbed the unprecedented fall in interest rates for 2020.

Costs

Costs decreased by 9% compared to the same period last year and compared to the previous quarter, to reach 1.9 billion dirhams as a result of effective cost control measures.

Provisions for impairment also decreased by 31% compared to the same period in 2020, due to a significant decrease in the net cost of risk by 158 basis points, on the back of applying the precautionary provisioning approach in the previous quarters.

The net interest margin increased to 2.46%, while the cost of financing decreased due to the strong growth in current and savings account balances, which reduced the impact of the lower net interest margin in Denizbank, following the rise in interest rates in the last quarter of 2020 and the first quarter. From 2021.

Assets and deposits

Total assets remained stable during the first quarter at 695 billion dirhams, while maintaining a strong asset base.

Customer loans stood at 436 billion dirhams, with strong demand for personal loans, auto loans and mortgage financing.

The deposit mix improved further, with current and savings account balances increasing by 16 billion dirhams, accounting for 56% of total deposits.

Loans

The Impaired Loan ratio improved by 0.1% to 6.1%, while the coverage ratio was enhanced to 125.1%, reflecting the precautionary approach towards credit impairment.

The Liquidity Coverage Ratio of 165.1% and the Tier 1 Ratio of Common Equities of 15.6% reflect the core strengths of the Group, enabling it to continue providing support to customers and the community as a whole.

adapt

“The rise in Emirates NBD’s profits in the first quarter to 2.3 billion dirhams, an increase of 12% compared to the same period of the previous year, reflects the extent of its flexibility in adapting to The emerging conditions, as well as the gradual economic recovery in the wake of the global turmoil in 2020 ».

He added, "We have recently published the Corporate Social Responsibility Report for the year 2020, which highlights the Group's achievements and its commitment to support environmental and social issues."

Al-Qassem pointed out that “the bank will culminate in its celebrations of the (Year 50) initiative by launching a number of activities and events aimed at praising the achievements of the UAE over the past 50 years, and inspiring the Emirati youth generation to crystallize their vision and achieve their aspirations for the next 50 years through innovation and creativity.”

Accelerate investment

In turn, Group Chief Executive, Shane Nelson, said, “Our strong first-quarter results will enable us to accelerate investment in the digital space and expand our international network of branches to support future growth.”

He added, "In the first quarter of 2021, Emirates NBD expanded its network of branches in Saudi Arabia, by opening new branches in Madinah and Makkah Al-Mukarramah."

Nelson indicated that the bank raised a loan, in March 2021, amounting to $ 1.750 billion, linked to environmental, social and institutional governance, as the cost of the loan is linked to the level of additional improvements that are achieved in terms of efficiency of water consumption and the percentage of females in senior management positions, and this loan is the first One of its kind issued by a bank in the Gulf region.

37% increase in Emirates Islamic profits

Emirates Islamic Bank announced yesterday its financial results for the period ending March 31, 2021, recording a net profit of 212 million dirhams, an increase of 37%, compared to the same period last year, and 224% higher than the previous quarter, while maintaining the strength of its balance sheet .

Total income increased by 12% compared to the previous quarter, on the back of the recovery in unfunded income, while total assets reached 71.2 billion dirhams, an increase of 1% over the year 2020.

Costs decreased by 9% compared to the same period in 2020, and by 11% compared to the previous quarter, as a result of effective cost control measures.

Operating profit, amounting to 319 million dirhams, decreased by 12%, compared to the same period of the previous year, and increased by 39% compared to the previous quarter.

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