WAM DUBAI, 24th October, 2013 (WAM) — Emirates NBD today announced its financial results for the 9 months ending September 30th, registering a net profit of AED 2.6 billion, up 34 percent compared to AED 1.9 billion in the same period of 2012.
The total income of the bank was AED 8,695 million showing an increase of 13 percent compared to AED 7,706 million in the same period last year.
Emirates NBD’s Chief Executive Officer, Rick Pudner, said, “During the first 9 months of 2013, we have delivered a strong set of financial results with net profit for the period up by 34 percent compared to the same period in 2012. This is testament to our ability to take advantage of the improving economic backdrop in the U.A.E., and Dubai in particular, as well as the relentless and successful execution of our strategic agenda. Profitability has been underpinned by a strong 13 percent increase in revenue as growth momentum, particularly in our retail and Islamic franchises, has continued to gather pace.” Emirates NBD’s Chief Financial Officer, Surya Subramanian, said, “Operating profits for the first 9 months of 2013 grew strongly by 24 percent over the comparable period of 2012. This excellent operating performance was achieved despite continued conservative provisioning as strong top line growth was supported by improved operational, funding and capital efficiency. We are also on track to achieving our targeted impaired loan coverage by the end of 2013 as outlined 2 years ago.” Total income for the 9 months ended 30th September 2013 amounted to AED 8,695 million, an increase of 13 percent compared with AED 7,706 million in the same period of 2012.
Emirates NBD continued to pro-actively manage credit quality and impaired loans across the bank’s corporate, retail and Islamic financing portfolios have improved marginally during the first 9 months of 2013 by 0.2 percent to end the period at 14.1 percent.
The positive contribution of the Bank’s investments in associates and joint ventures amounted to AED 101 million during the period compared with AED 73 million in the first 9 months of 2012. The Group sold 32.6 percent of its stake in Union Properties PJSC, resulting in a decrease in the Group’s shareholding from 47.6 percent as at 31st December 2012 to 15 percent and gain of AED 191 million was recorded on the disposal of the stake.
Net profit for the Group was AED 2,584 million for the 9 months ended 30th September 2013, 34 percent above the profit posted in the comparable period of 2012 of AED 1,929 million principally due to higher top line growth.
Customer Loans as at 30th September 2013 (including Islamic financing) amounted to AED 234.4 billion, an increase of 7 percent from the end of 2012.
Customer Deposits as at 30th September 2013 were AED 228.6 billion, an increase of 7 percent from 31st December 2012.
The loan to deposit ratio continued to remain within the Bank’s target range of 95 percent to 105 percent throughout 2013 to end the period at 102.5 percent.
In a landmark deal by the Global Funding desk, Emirates NBD improved the capital structure of the bank by issuing AED 3.67 billion Tier I Perpetual non-call 6 notes. AED 7.8 billion of U.A.E. Ministry of Finance funds were also repaid.
The financial results for the 9 months ended 30th September 2013 reflects Islamic Banking’s aspiration to become the leading Islamic bank in the region with a net profit of AED 128 million.
On 9th June 2013, the Group acquired a 95.2 percent stake in BNP Paribas Egypt S.A.E. for a consideration of USD 476 million while the remaining minority interest of 4.8 percent was acquired in September 2013 for a further USD 24 million.
Despite a challenging political and economic backdrop, the BNP Paribas Egypt operation has continued to perform well since its consolidation with the Group on 9th June 2013, contributing AED 201 million revenue and AED 79 million net profit to the Group results.
The bank says, that the U.A.E. remains well-positioned to enjoy solid growth in 2013, driven primarily by an expansion in non-oil sectors, particularly manufacturing, tourism and retail sectors, while oil production is also likely to contribute to growth given a 4.6 percent increase in oil production for the first 9 months of 2013. Although the external environment remains challenging, economic data during the period supports the bank’s view that GDP growth of 4.4 percent could be achieved during 2013. Emirates NBD is well placed to capitalise on the improving economic fundamentals as the bank has a clear strategy in place to further enhance shareholder returns and take advantage of the selected growth opportunities. This strategy is built around five core building blocks which include delivering excellent customer experience, building a high performance organisation, driving core businesses, running an efficient organisation and driving geographic expansion.