UAE headquartered Emirates NBD, delivered its financial results with net profit up 39% to AED 7.1 bn ($1.93bn). According to the bank, operating performance was helped by income growth, a modest increase in costs and a lower impairment charge.
Total income for the year grew by 5% to AED 15.2 bn. Net interest income grew 8% to AED 10.2 billion due to growth in assets and a lower cost of deposits. Non-interest income improved 1% to AED 5.0 billion as core fee income growth was offset by lower gains from the sale of properties and investments. Core fee income improved 14% y-o-y driven by growth in trade finance, foreign exchange and derivative income, alongside growing credit card volumes.
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The Bank’s Private Banking business grew in its core segments across the Gulf countries and the Global South Asian segment. Despite the market turmoil, Emirates NBD Asset Management grew its AuM to over AED 11 billion, largely driven by net inflows from local, regional and international institutional investors.
The bank’s Islamic finance division, EI, grew by 25% in total income (net of customers’ share of profit) amounting to AED 2,432 million compared to AED 1,949 million in 2014. Financing and investing receivables grew by 31% to AED 34 billion during 2015. EI expanded its branch network to 60 with the opening of four new Branches. In order to enhance customer banking experience EI also added sixteen new ATMS & SDMs, bringing the total number to 190.
Emirates NBD estimates UAE economic growth at 4% in real terms in 2015, down from 4.6% in 2014. The lender expects growth to slow further to 3.8% in 2016 as a more cautious fiscal stance, tighter liquidity conditions and a strong dollar will continue to pose headwinds to non-oil growth, particularly in the services sectors. Oil output is expected to rise in line with official targets and this should help to boost headline GDP growth.
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