Early results point to a bumper year for UAE banks

Dubai: The UAE banks began reporting their full year results on Sunday with Emirates NBD, Emirates Islamic and Mashreq, all Dubai based banks posting strong profits and asset growth in 2014.

Emirates NBD, the largest bank in the UAE by total income and branch network reported net profit of Dh5.1 billion for the full year up 58 per cent compared to 2013.

Total Income for the year 2014 grew by 22 per cent to Dh14.4 billion. While the net interest income grew 17 per cent to Dh9.5 billion, non-interest income grew 33 per cent to Dh4.9 billion

“We are the first bank in the UAE, and for the first time in our 50-year history, to report an annual operating profit before Impairment in excess of Dh10 billion,” Shaikh Ahmad Bin Saeed Al Maktoum, Chairman, Emirates NBD, said in a statement.

The bank’s board has recommended 35 per cent dividend compared to 25 per cent last year.

Emirates Islamic reported a net profit of Dh364 million, a 161 per cent year-on-year increase. The bank’s total net income (net of customer’s share of profit) during the period rose to Dh1.95 billion, up 28 per cent on the 2013 figure.

Mashreq reported a net profit of Dh2.4 billion for 2014, up 33 per cent as compared to 2013.

Total operating income for 2014 was Dh5.8 billion, an increase of 20.8 per cent compared to Dh4.8 billion reported in 2013. On a quarterly basis, operating income was up Dh1.5 billion in the fourth quarter of last year, which represented an increase of 13.5 per year on year and 3 per cent quarter on quarter.

“2014 has been a watershed year for Mashreq. I say that because the impressive 33 per cent growth in net profit was a result of intrinsic growth in our core business — our loans have grown by 15.1 per cent and our customer deposits have grown even faster than loans,” said AbdulAziz Al Ghurair Mashreq’s CEO.

The bank’s net interest income at Dh3 billion was up by 28.9 per cent compared to a year earlier, driven by 15.1 per cent year-on-year increase in loan volume and 26 bps improvement in net interest margin from 2.94 per cent in December 2013 to 3.20 per cent this year. The bank’s board has recommended a 28 per cent cash dividend.