DUBAI: Emirates NBD, the UAE’s largest lender, posted a net profit of Dh7.24 billion ($1.97 billion) for the financial year 2016, up 2 per cent compared to the previous year. However, the total income declined 3 per cent y-o-y to Dh14.7 billion, mainly due to lower non-interest income, the bank said. The operating performance was helped by further recoveries from legacy impaired loans which offset lower non-interest income. Net interest income declined 1 per cent as a contraction in margins more than offset asset growth. These results have enabled the Board of Directors to recommend to maintain the 2016 dividend at 40 fils per share, the bank said.
Commenting on the group’s performance, Sheikh Ahmed Bin Saeed Al Maktoum, chairman said: “2016 marked another successful year for Emirates NBD as we continued to deliver improved profitability and a stronger balance sheet amid a challenging environment. We are proud to have launched a number of digital initiatives to support the ‘Smart Dubai’ vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. These include a futuristic banking space as part of Dubai Future Foundation’s prestigious Museum of the Future and a pilot blockchain network for international remittance and trade finance. “I am very pleased to announce that Emirates NBD has been granted licenses to open 3 additional branches in the Kingdom of Saudi Arabia and our first branch in India. As a leading bank in the region and a front-runner in digital banking innovation, we are well placed to take advantage of growth opportunities within the region. In light of the solid performance by the Bank, we are proposing to maintain the cash dividend at 40 fils per share.” Hesham Abdulla Al Qassim, vice chairman and managing director, said: “Despite challenging economic conditions, Emirates NBD has delivered a healthy set of financial results. 2016 marked a year of digital innovation as the Bank made bold strides in advancing our digital banking capabilities and the multichannel transformation of our processes, products and services. We are very pleased to have been awarded, for the second consecutive year, ‘Bank of the Year’ in the UAE by The Banker.”
Group chief executive officer Shayne Nelson said: “Emirates NBD delivered a solid performance in 2016. Net profit increased by 2% to Dh7.24 billion, underpinned by asset growth, a control on expenses and an improved cost of risk. The bank’s stable and resilient financial profile were recognised by Moody’s in June when they upgraded Emirates NBD’s long-term rating to A3. The group’s liquidity position remained strong, bolstered by a stable and highly diversified deposit base and our ability to raise over Dh20 billion of term funding. Given the ongoing challenging environment, we will remain focused on controlling expenses and managing risks whilst ensuring that we continue to invest to support future growth. I am confident that Emirates NBD will continue to deliver excellent customer service and superior value to our shareholders.”
