Emirates NBD made 8.5% more profit in the first nine months, earning $5.2 billion, thanks to strong growth in interest income

Emirates NBD announced on Thursday that its net profit for the first nine months of 2024 grew by 8.5% compared to the same period last year, reaching $5.2 billion (AED 19 billion). This increase was mainly due to higher interest income, as the bank benefited from regional economic growth and improved consumer confidence.

9-Month Performance Summary

Emirates NBD, Dubai’s biggest bank by assets, reported the following results for the first nine months of 2024:

1. Higher Net Interest Income
   • The bank’s net interest income increased by 6.7% to $6.5 billion (AED 23.8 billion), compared to $6.1 billion (AED 22.3 billion) during the same period last year.
2. Slight Increase in Total Income
   • Total income rose 0.5% year-on-year to $9 billion (AED 32.9 billion), driven by strong loan growth and stable, low-cost funding.
3. New Loans Provided
   • Emirates NBD granted over $27.2 billion (AED 100 billion) in new loans across its network in 2024.
4. Operating Expenses
   • Operating costs increased by 16% to $2.6 billion (AED 9.7 billion) during the first nine months of 2024.
5. Loan and Deposit Growth
   • Total loans rose 9% to $142.9 billion (AED 525 billion) by the end of September 2024.
   • Deposits grew 10% to $175.6 billion (AED 645 billion) compared to the same period last year.
6. Strong Business Growth
   • The bank’s lending increased across all areas by 9% during the nine-month period.
7. Assets Under Management (AUM)
   • Emirates NBD now manages over $40 billion (AED 147 billion), reflecting the success of its wealth management efforts.
8. Digital Wealth Success
   • The bank’s digital wealth business expanded fivefold in 2024, adding services like mutual funds, fractional bonds, and sukuks.
9. Forbes Middle East Rankings
   • Emirates NBD is ranked 6th on Forbes Middle East’s 30 Most Valuable Banks list and Top 100 Listed Companies list for 2024.

Key Quote

“We are excited about expanding into Saudi Arabia. With 19 branches and 59 ATMs, we achieved a 49% increase in loans during the first nine months of 2024,” said Hesham Abdulla Al Qassim, Vice Chairman and Managing Director.

“Emirates Islamic earned a record profit of AED 2.5 billion ($680 million) and saw customer financing grow by 24% this year. Over the past 20 years, it has become a leader in innovative Islamic banking in the UAE.”

Third-Quarter Results

The bank reported that its net profit for the third quarter was stable at $1.4 billion (AED 5.2 billion), the same as last year. However, net interest income rose by 8% to $2.4 billion (AED 8.5 billion), and total income increased 1% to $3.1 billion (AED 11.5 billion).

Emirates NBD also highlighted that its net interest margin improved to 3.75% in Q3 2024, thanks to DenizBank benefiting from better loan pricing and stable funding costs.

Additionally, Emirates NBD Capital raised $23 billion (AED 84.5 billion) through syndicated and club loans in the third quarter.

Published: 17th October 2024

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