7.3 billion dirhams, profits of «Emirates NBD» in 9 months

7.3 billion dirhams, profits of «Emirates NBD» in 9 months
7.3 billion dirhams, profits of «Emirates NBD» in 9 months

Emirates NBD announced strong financial results for the third quarter of 2021, with net profits increasing by 29% compared to the same period in the previous year, which reflects the bank’s financial flexibility and the success of its diversified business approach.

The bank stated in a statement to the Dubai Financial Market today, that during the first nine months of this year, it achieved a net profit of 7.3 billion dirhams, compared to 5.6 billion dirhams in the comparative period of 2020, an increase of 29%, while the bank achieved a net profit of 2.5 billion dirhams in the third quarter of the year. This year, an increase of 61% compared to the previous quarter

Total income increased by 7% over the second quarter of 2021 as a result of improved margins on the back of high demand for retail loans, a more efficient funding base, and a higher volume of DenizBank’s contribution. While the total income decreased by 5% compared to the same period of the previous year to date due to the record drop in interest rates.

Costs decreased by 2% compared to the same period of the previous year to date, while the cost-to-income ratio reached 33.1%, which is within the limits targeted by the management.

Impairment provisions decreased significantly, amounting to 42% compared to the same period of the previous year to date, while the cost of risk ended at 106 basis points, which is at the lower end of the range recorded for the pre-pandemic period.

Interest rates remain at record low levels, however core business is still gaining momentum, especially with strong demand for retail loans. The Group’s balance sheet gained further support as a result of the improvement in the deposit mix, credit quality, capital and liquidity.

Emirates NBD continues to support its customers and partners during the recovery journey from the consequences of the global pandemic, while continuing to accelerate investment in digital transformation initiatives and its international network to support future growth.

Total assets remained stable at AED 699 billion while maintaining a strong asset base.

Customer loans amounted to 438 billion dirhams in the third quarter of 2021, with a record performance during the quarter in terms of growth in demand for personal loans and credit cards.

The deposit mix witnessed the highest level ever for current and savings account balances, which rose by 30 billion dirhams year-to-date, which put the group in a very good position in anticipation of any unexpected rise in interest rates.

The impaired loan ratio improved by 0.1% to 6.2% and the coverage ratio improved to 126.7%, reflecting the Group’s prudential approach towards early credit provisioning.

The Liquidity Coverage Ratio of 157.2% and the Tier 1 Equity Ratio of 16.1% reflect the core strengths of the Group, enabling it to continue providing support to clients and providing further opportunities for growth and prosperity.

Hisham Abdullah Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, said: “The growth in income and profits for Emirates NBD in the third quarter of 2021 is a clear indication of improving economic conditions in the region. The UAE has managed to reopen the economy. In full, thanks to the successful handling of the pandemic by our wise and visionary leadership, they are today well positioned to benefit from the expected growth in the international travel sector. As the official banking partner of Expo 2020 Dubai, the group looks forward to crystallizing our pioneering vision to shape the future of global banking services and highlight promising investment opportunities in the United Arab Emirates. Emirates NBD is fully committed and keeps pace with the 50-year plan projects to further contribute to the further development of Emirati talents and their qualifications to engage in the national workforce efficiently and effectively.”

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