Emirates NBD Bank (EMIRATESNBD) Q3 2024 earnings summary

Executive summary

• Record net profit of AED 19.0 billion for 9M'24, up 9% year-over-year, driven by strong loan growth, higher net interest income, and robust operational performance across all business units.

• Investments in digital, AI, and regional expansion, especially in Saudi Arabia and Turkey, are yielding significant business and income growth.

• Emirates Islamic delivered record AED 2.5 billion profit in 9M'24, with 24% customer financing growth.

• Leading GCC bank for ESG, first globally to publish SLLB framework aligned with new ICMA/LMA guidelines.

• Solid balance sheet with robust capital, liquidity, and credit quality.

Financial highlights

• Total income for the first nine months was AED 32.9 billion, up 0.5% year-over-year, with Q3 income up 7% quarter-on-quarter.

• Net interest income rose 7% year-on-year to AED 23.8 billion, supported by 11% asset growth.

• Operating expenses increased 16% year-over-year to AED 9.7 billion; cost-to-income ratio at 29.4%.

• Gross loans grew 9% year-over-year to AED 525 billion; deposits up 10% to AED 645 billion.

• NPL ratio improved to 3.9% from 4.6% year-over-year; coverage ratio at 149%.

Outlook and guidance

• Full-year loan growth guidance revised to low double digits, reflecting strong demand and positive economic outlook.

• Net interest margin expected to finish near the lower end of guidance due to further rate cuts; 2025 guidance to be updated at year-end.

• Cost of risk guidance revised to a 10-20 basis point charge for the full year, with Q4 expected to see higher charges.

• Cost-to-income ratio expected to remain in the 30% range for full year.

• Non-oil economies in UAE and KSA expected to record healthy growth in 2024, with higher oil production in 2025 providing further support.