Emirates NBD Reports Record AED 19 Billion Profit in 9M’24, Up 9% YoY

Photo : Dubai government media office

Emirates NBD has announced a remarkable profit of AED 19.0 billion for the first nine months of 2024, marking a 9% increase from the previous year. This achievement underscores the bank’s strategic positioning to leverage regional economic growth and heightened consumer confidence.

The bank's performance was bolstered by over AED 100 billion in new loans extended to customers throughout 2024, which significantly contributed to a robust income growth of 7% in the third quarter. This growth can be attributed to strong loan expansion, improved profit margins, and increased fee and commission income. Emirates NBD’s Digital Wealth platform has been a key player in enhancing the Group’s Assets Under Management, which has now surpassed USD 40 billion. The product range has expanded to include fractional bonds, sukuks, equities, and mutual funds, catering to diverse customer needs. In addition, Emirates Islamic achieved record results, reporting a profit of AED 2.5 billion and benefiting from a substantial 49% growth in loans in the Kingdom of Saudi Arabia (KSA) due to the recent branch expansions.

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The Group reported a profit 9% higher than last year, thanks to significant loan growth, a low-cost funding base, and strong transaction volumes. Income rose to AED 32.9 billion, driven by stable, low-cost funding and robust loan growth. Lending increased by 9% in the first nine months of 2024, with impressive growth across all business units and international locations, leading to an upward revision in loan growth guidance. The deposit mix proved to be a strength, with a growth of AED 60 billion, including a AED 33 billion increase in Current & Savings Accounts. The net interest margin improved to 3.75% in the third quarter, with DenizBank also seeing an uptick in margins due to favorable loan pricing and stable funding costs. The Group reported an impairment credit of AED 1.3 billion, with the cost of risk beginning to normalize in Q3-24. The impaired loan ratio improved to 3.9%, reflecting a buoyant economy that benefitted clients. Emirates Islamic delivered a record profit of AED 2.5 billion, achieving a customer financing growth of 24% in the first nine months of 2024. Earnings per share increased significantly by 9%, reaching 295 fils.

Emirates NBD’s focus on customer-centric services and products has driven robust business growth. Digital Wealth volumes saw a fivefold increase in 2024 as the offering expanded to include mutual funds alongside fractional bonds, sukuks, and global and local equities. The Group now has over USD 40 billion in Assets Under Management, reflecting the success of its wealth management strategy. The bank’s digital platform, ENBD X, boasts a market-leading global digital adoption rate of 91%. Additionally, the network in KSA has expanded to 19 branches and 59 dedicated ATMs, significantly contributing to the impressive loan growth. New initiatives, such as a Real-time Payment Tracker for business customers and various successful debt capital market transactions, further enhance the bank’s offerings.

Looking ahead, Emirates NBD is transforming into a data-first, digitally-focused, and environmentally responsible powerhouse. The bank has partnered with Microsoft to implement Generative AI across its operations, enhancing customer experiences and streamlining processes. Innovative measures include an anti-money laundering enhancement system utilizing machine learning, a fully digital inward guarantee process through the smartGUARANTEES system, and a sustainable fixed deposit initiative aimed at supporting eco-friendly projects. Emirates NBD has also been recognized as having the highest number of LEED Platinum certified branches globally.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, stated that Emirates NBD’s profit surged to a remarkable AED 19.0 billion for the first nine months of 2024, emphasizing the Group’s strategic position to benefit from regional growth and consumer confidence. Shayne Nelson, Group CEO, noted that income grew 7% in the third quarter, driven by strong loan growth, improving margins, and higher fee and commission income, adding that the bank is recognized as the leading bank in the region for sustainable solutions. Patrick Sullivan, Group CFO, remarked that fee and commission income continues to grow strongly, aided by investments in digital enhancements and that the Group’s strong balance sheet has been recognized positively by both Moody’s and Fitch.

The non-oil economies of the UAE and KSA are expected to experience healthy growth in 2024, supported by strong consumer activity and substantial public and private sector investments. Anticipated increases in oil production in 2025 are also expected to provide additional support for both economies. Overall, while regional geopolitical factors are monitored, they have not notably impacted the performance of Emirates NBD's markets. Emirates NBD remains committed to delivering innovative banking solutions and fostering sustainable growth within the region, ensuring it remains a key player in the financial landscape.

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