UAE’s largest lender to open 1st branch in India following Dh7.24b net profit in 2016

United Arab Emirate’s largest lender, Emirate NBD has released that it encountered a 3 per cent reduction in total income, and 1 per cent decline in net interest income for the 2016 financial year compared to previous year. On the positive, the bank gained a number of boost when comparing 2016 financial year to 2015. At the end of 2016, net profit was at Dh7.24 billion, total assets at Dh 448.0 billion, customer loans at Dh290.4 billion, Customer deposits at Dh310.8 billion, which represents 2%, 10%, 7%, 8% increment respectively.

More to the bank’s financial highlights, 2016 core gross fee income held steady despite one-off impact in Q4-16 from the Egyptian Pound devaluation whilst income from property and investments securities declined on lower disposals. Also, cost of risk improved to 83 basis points as impairment charge of Dh2,608 million is 23% lower than in 2015, helped by over Dh3 billion of write backs and recoveries. Enhanced asset quality during 2016 as Impaired Loan ratio improved to 6.4% whilst the Impaired Loan Coverage ratio strengthened to 120.1%. The bank raised over Dh20 billion of term debt at competitive pricing, through private placements while Tier 1 Capital Ratio was held at a healthy 18.7%, and proposed dividend maintained at 40 fils per share.

The chairman of NBD, Sheikh Ahmed Bin Saeed Al Maktoum, said while commenting on the bank’s comparative analysis said that the bank has acquired licenses to open 3 additional branches in the Kingdom of Saudi Arabia and also a branch in India which will be the first in the country. He furthered to say “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.” Additionally, he mentioned that Emirates NBD launched a set of digital initiatives including 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 which is designed 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.