Dubai; Emirates NBD (EmiratesNBD), the largest bank in the UAE by total income, net profit and branch network reported a net profit of Dh7.1 billion for the full year 2015, up 39 per cent compared to the previous year year .
The strong performance was helped by income growth, a modest increase in costs and a lower impairment charge. The board of directors has recommended an increase in the 2015 dividend to 40 fils from 35 fils per share.
Total income for the year grew by 5 per cent to Dh15.2 billion. Net interest income grew 8 per cent to Dh10.2 billion due to growth in assets and a lower cost of deposits.
Non-interest income improved 1 per cent to Dh5 billion as core fee income growth was offset by lower gains from the sale of properties and investments. Core fee income improved 14 per cent year on year driven by growth in trade finance, foreign exchange and derivative income, alongside growing credit card volumes.
Assets cross $100b mark
“During the year, and for the first time in the bank’s history, total assets crossed the $100 billion mark, total income exceeded Dh15 billion and net profit surpassed Dh7 billion, further reinforcing Emirates NBD’s position of leadership in the region. I am particularly pleased that Emirates NBD continued to achieve growth in revenue and net profit amid a challenging environment,” Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Emirates NBDsaid in a statement.
Despite a more challenging year for regional liquidity, the bank’s advances to deposits ratio improved to 94.2 per cent as a result of further growth in stable funding sources such as current account and savings account deposits.
The bank issued Dh10.6 billion of term debt with most of this issued in the first half of 2015 when market conditions were receptive.
“We delivered strong growth in net profit, supported by an enhanced asset mix, a further improvement in credit quality and an improved cost of risk. Our prudent balance sheet management and strong ability to attract and retain both retail and corporate deposits have enabled us to improve the bank’s liquidity position despite a challenging year for regional liquidity,” said Group Chief Executive Officer, Shayne Nelson.
The bank’s balance sheet remains strong due to further improvements in the credit quality and liquidity profile coupled with robust capital ratios. The impaired loan ratio improved to 7.1 per cent and the cost of risk declined for the sixth consecutive quarter whilst the impaired loan coverage ratio increased to 111.5 per cent.
