Dubai: Emirates NBD on Thursday reported a net profit of Dh2.35 billion in the first half of 2014, up 30 per cent compared to the same period last year. The strong operating performance for the first half of 2014 was helped by solid revenue growth in both retail banking & wealth management and Islamic banking subsidiary, Emirates Islamic.
Total income for the first half of 2014 grew by 27 per cent to Dh7.04 billion whilst pre-impairment operating profit for the period improved by 35 per cent to Dh4.91 billion. Total assets grew by 2 per cent to Dh348.3 billion in the first half of 2014. While customer loans increased by 1 per cent to Dh241.8 billion customer deposits increased by 6 per cent to Dh252.9 billion over the same period. The bank’s advances to deposits ratio improved to 95.6 per cent from 99.5 per cent at the end of 2013.
Non-performing loans (NPL) ratio improved further to 13.5 per cent. The impairment charge for first half of 2014 increased to Dh2.61 billion, compared with Dh1.88 billion in the previous year. This was primarily driven by continued conservative provisioning on the corporate and Islamic financing portfolios, which helped boost the coverage ratio to 64.7 per cent from 52.7 per cent in the first half of 2013.
“The healthy set of results in the first half is driven by strong growth in both net interest income and non-interest income coupled with a firm control on expenses. I have focused management efforts on balance sheet optimization, diversification of income, addressing the legacy NPL position, improved capital efficiency and stronger liquidity. As a result the bank is in a healthier position than at the beginning of 2014 in each of these areas,” said Shayne Nelson, Group Chief Executive Officer, Emirates NBD.
