Dubai – Mubasher: Emirates NBD, a leading bank in the region, has reported a 63% year-on-year surge in net profits for the first nine months of 2019.
Net profit reached AED 12.5 billion during the nine-month period ended 30 September 2019, versus AED 7.65 billion in the year-ago period, according to a press release.
The bank’s results include an impact worth AED 4.4 billion from the Network International transaction.
Core operating profit increased by 5% year-on-year post the DenizBank acquisition, backed by a 17% growth in net interest income on loan growth and a 31% increase in non-interest income from higher foreign exchange and credit card income, Emirates NBD revealed.
Total Income stood at AED 15.54 billion during the January-September period of 2019, increasing by 20% from AED 12.90 billion in the corresponding period of 2018.
The bank’s impairment charge soared by 149% year-on-year with cost of risk jumping to an annualised 103 basis points as a result of the inclusion of DenizBank and lower writebacks and recoveries.
Total assets climbed by 35% to AED 675.6 billion during as at 30 September 2019, compared to AED 500.3 billion as at 31 December 2018.
Following the inclusion of DenizBank, Emirates NBD’s customer loans grew by 31% to AED 429.7 billion during 2019, while customer deposits went up by 35% to AED 468.2 billion.
Hesham Abdulla Al Qassim, vice chairman and managing director, Emirates NBD said: “Emirates NBD delivered a strong set of results in the first nine months of 2019. The Bank successfully completed the acquisition of DenizBank in the third quarter of 2019. This represents a significant milestone for Emirates NBD, expanding our presence to 13 countries and establishing Emirates NBD as a leading Bank in the MENAT region with over 14 million customers.”
“The bank also raised the foreign ownership limit from 5% to 20% and announced its intention to seek shareholder and regulatory approval to further increase this to 40%. The Bank is offering our valued and loyal shareholders an exceptional opportunity to partake in our continued growth and success through participating in a rights issue of up to $1.75 billion as we remain key partners to the growth agenda and vision of our nation’s esteemed leadership,” Al Qassim added.
Earlier this month, Emirates NBD announced it has been ranked the 19th among 250 businesses in the Forbes’ third annual list of the World’s Best Regarded Companies.
In the First half of 2019, Emirates NBD posted a net profit of AED 7.5 billion, which is up by 49% from AED 5.01 billion in the prior year period.
