Dubai: Emirates NBD on Monday reported a net profit of Dh3.3 billion, up 27 per cent from 2012 with its operating porfit surging 20 per cent to Dh2.9 billion.
Bank’s total income for 2013 amounted to Dh11.85 billion, an increase of 16 per cent compared with Dh10.21 billion in 2012.
“As a leading bank in the region, we are well placed to take advantage of future growth opportunities in Dubai, the UAE and the Gulf region. In light of the good performance by the bank, we are proposing to maintain the cash dividend at 25 per cent per share,” said Shaikh Ahmad Bin Saeed Al Maktoum, Chairman, Emirates NBD.
Net interest income for the year improved by 18 per cent to Dh8.13 billion from Dh6.91billion in 2012.
Growth path
The improvement in net interest income is attributable to a combination of year-on-year loan growth, an improvement in the net interest margin helped by a more efficient capital and funding structure, a higher growth in consumer lending and the positive impact of declining Emirates interbank offered rate(Eibor) on loan spreads, the bank said in a statement.
Non-interest income improved by 12 per cent to Dh3.71 billion in 2013, driven primarily by an increase in both core banking fee and property-related income.
Bank’s total assets at the close of 2013 were up 11 per cent at Dh342.1 billion compared with Dh308.3 billion at the end of 2012.
While customer loans were up 9 per cent at Dh238.3 billion, customer deposits surged 12 per cent to Dh239.6 billion in 2013. The impairment charge in 2013 was raised to Dh4.71 billion compared with Dh4 billion in 2012.
At the close of 2013, the bank reported a capital adequacy ratio of 19.6 per cent with Tier 1 ratio at 15.3 per cent.
“As the bank witnessed growth across multiple revenue streams, particularly in the Islamic franchise and retail business, it continued to innovate and deliver a superior customer experience.
"This, combined with our healthy levels of capitalization and an improving business mix, positions the bank to reap the benefits of revenue growth opportunities,” said Shayne Nelson, Group Chief Executive Officer of Emirates NBD.
