Emirates NBD Bank (EMIRATESNBD) Q4 2024 earnings summary

Executive summary

• Achieved record profit before tax of AED 27.1 billion and profit after tax of AED 23 billion for 2024, driven by strong lending growth, stable low-cost funding, and healthy recoveries.

• Total assets increased to AED 996,582 million as of 31 December 2024, with 16% balance sheet growth year-over-year.

• Substantial 100 fils dividend proposed, with strong capital, liquidity, and credit quality maintained.

• Emirates Islamic delivered a record profit of AED 2.8 billion.

• Leading GCC bank for ESG, with improved ratings from Sustainalytics and MSCI.

Financial highlights

• Net interest income rose 8% year-over-year to AED 32.4 billion; total income up 3% to AED 44.1 billion.

• Gross lending increased 10% year-over-year, with over AED 160 billion in new lending; KSA branches contributed 57% loan growth.

• Total deposits grew by AED 82 billion, up 14%, maintaining a CASA ratio of 59%.

• Cost-income ratio at 31.2%, within guidance, despite an 18% year-over-year increase in costs.

• NPL ratio improved to 3.3%, with coverage at 156%.

Outlook and guidance

• Expect high single-digit loan growth in 2025, supported by positive economic outlook and infrastructure investment.

• Net interest margin guidance for 2025 is 3.3%-3.5%, with further compression expected from prior and anticipated rate cuts.

• Cost of risk guidance set at 40-60 bps for 2025, reflecting normalization in a buoyant economy.

• Cost-income ratio expected to remain in the 31%-33% range.

• UAE operations will be subject to a 15% corporate tax rate from 2025, with an estimated AED 1.4 billion impact based on 2024 profit.