Emirates NBD Bank (EMIRATESNBD) Q2 2024 earnings summary

Executive summary

• Achieved record net profit of AED 13.8 billion in H1 2024, up 12% year-on-year, with Q2 profit at AED 7.1 billion, the highest ever quarterly result.

• Lending surpassed AED 500 billion with 6% growth in H1 2024, supported by robust regional demand and strong performance across all business units.

• Retail, corporate, and international operations, including DenizBank and KSA branches, contributed to growth, with notable expansion in assets and customer base.

• Emirates Islamic posted record H1 profit of AED 1.7 billion, with its balance sheet surpassing AED 100 billion.

• Moody’s upgraded the credit rating outlook to positive, reflecting strong performance and balance sheet strength.

Financial highlights

• Total income reached AED 21.4 billion in H1 2024, up 0.4% year-on-year, with net interest income up 6% and non-funded income down 12%.

• Fee and commission income surged 64% year-on-year, with strong growth in investment banking and card spend.

• Operating expenses rose 12% year-on-year to AED 6.1 billion; cost-to-income ratio at 28.6%.

• NPL ratio improved to 4.2% from 5.6% year-on-year; impaired loan coverage ratio at 145%.

• CET1 ratio at 15.4%; total capital ratio at 18.0%; liquidity coverage ratio at 199%.

Outlook and guidance

• Loan growth guidance revised upwards to high single digits, reflecting strong H1 performance and positive economic outlook.

• Cost of risk guidance revised down to a 0-20 basis points credit for the full year, with normalization expected in H2.

• Net interest margin guidance maintained at 3.6%-3.8% for 2024, with DenizBank expected to average 4%-5%.

• Continued investment in digital, IT, and branch expansion, especially in KSA and international markets.

• Non-oil sector growth in UAE and Saudi Arabia remains robust, supported by infrastructure investment and a healthy project pipeline.