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Total income of the bank has jumped 9 percent over the preceding half year due to a marked increase in transactions and stable Net Interest Margins
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Customer loans stood at Dh 438 billion with Q2-21 witnessing a record quarter for growth in personal loans, credit cards and mortgages
The net profit of Emirates National Bank of Dubai (NBD), Dubai’s largest bank, rose 17 percent to Dh4.8 billion on stable margins, effective cost management and a significant reduction in the cost of risk reflecting improved business sentiment.
Total income of the bank has jumped 9 percent over the preceding half year due to a marked increase in transactions and stable Net Interest Margins which are at at 2.45 percent with lower cost of funding from record CASA balances mitigating lower yields on loans and liquid assets.
Expenses have declined 6 percent y-o-y to Dh3.8 billion on disciplined cost management action.
Strong capital and liquidity combined with a healthy deposit mix and higher profits have enabled the Group to support customers. The bank provided Dh10.7 billion of support provided to over 120,000 customers.
Customer loans stood at Dh 438 billion with Q2-21 witnessing a record quarter for growth in personal loans, credit cards and mortgages. As for the deposit mix, CASA balances are now Dh 25 billion, positioning the Group very well for eventual rate rises.
Reflecting a good credit quality, the NPL ratio increased marginally by 0.1 percent to 6.3 percent in H1-21 with coverage ratio strengthening to 122.5 percent.
The digital bank has continued to expand; servicing more than 470,000 customers in the UAE and 75,000 customers in KSA.
Emirates NBD has also gone for more international expansion. The bank increased its branch network in Saudi Arabia to seven with the opening of a third branch in Riyadh
“Emirates NBD’s profits jumped 17 percent as the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels,” Shayne Nelson, Group Chief Executive Officer said.
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