Emirates NBD Reports 12% Income Surge Amid Expansion
Emirates NBD has announced a significant 12% increase in income, driven by strong loan growth, regional expansion, and innovative product offerings.
Summary
Emirates NBD's income surged by 12% to AED 23.9 billion due to strong loan growth, regional expansion, and innovative products, despite lower interest rates.
Emirates NBD PJSC, a leading banking group in the United Arab Emirates, has reported a robust 12% increase in income, amounting to AED 23.9 billion for the first half of 2025. This impressive growth is attributed to strong loan growth, strategic regional expansion, and the introduction of innovative product offerings.
The bank's lending activities saw an 8% increase, with loans growing by AED 41 billion, fueled by demand both in the UAE and across its expanding international network. This growth in lending was complemented by a significant rise in deposits, which grew by AED 70 billion. Notably, there was a record increase of AED 48 billion in low-cost Current and Savings Account balances, reinforcing the bank's strong deposit mix.
Operating profits rose by 9%, showcasing the bank's ability to absorb the impact of earlier interest rate cuts. Emirates Islamic, the bank's Islamic banking arm, delivered a record profit of AED 1.9 billion, highlighting its position as a leading Islamic bank in the region. The growing affluent population in the region has also propelled the bank's Assets Under Management to USD 50 billion, underscoring its successful focus on Wealth Management and innovative products.
Strategic investments in regional expansion, digital transformation, and generative AI are driving income growth, effectively offsetting the effects of reduced interest rates. The bank's impairment credit of AED 0.3 billion reflects impressive recoveries, with the impaired loan ratio improving to 2.8%.
Despite the strong performance, the bank's profit before tax decreased by 3% year-on-year to AED 15.4 billion, and overall profit fell by 9% to AED 12.5 billion. Expenses increased by 19% to AED 7.3 billion, which may be a point of concern for some investors.
In conclusion, Emirates NBD's strong financial performance and strategic initiatives position it well for future growth. However, given the mixed signals from the profit and expense figures, potential investors might consider holding their position to assess how the bank navigates these challenges in the coming quarters.
Source
Summary
Emirates NBD's income rose by 12% to AED 23.9 billion in the first half of 2025, driven by strong loan growth, regional expansion, and innovative product offerings. The bank's lending increased by AED 41 billion (8%), and deposits grew by AED 70 billion (10%), with a significant rise in low-cost Current and Savings Account balances. Operating profit increased by 9%, as the growth in loans and deposits offset earlier interest rate cuts. Emirates Islamic, a part of the group, reported a record profit of AED 1.9 billion, highlighting its strong position in the UAE's Islamic banking sector. The group's strategic investments in regional expansion, digital initiatives, and GenAI contributed to income growth, despite lower interest rates. Key figures for the first half of 2025 include a 9% increase in operating profit, a 12% rise in income, and an 8% growth in loans. Deposits increased by AED 70 billion, with a notable AED 48 billion increase in Current and Savings Accounts. The impaired loan ratio improved to 2.8%, and the bank reported a profit before tax of AED 15.4 billion, with a profit of AED 12.5 billion, expenses of AED 7.3 billion, and a net interest margin of 3.47%. The cost to income ratio was 30.3%, and the CET-1 ratio stood at 14.7%.
