The result included a gain of AED 2.1 billion ($572 million) from the sale of a stake in Network International in an initial public offering (IPO) in London in April.
Wednesday 17, July 2019 BY KUDAKWASHE MUZORIWA
Dubai-based Emirates NBD has posted a 49 per cent surge in H1 2019 net profit, owing to the lender’s gains from the sale of a stake in its digital payments firm, Network International, strong non-interest income on foreign exchange revenue and increased investment banking activity.
The lender reported a net profit of AED 7.5 billion compared with AED 5.02 billion the same period last year.
In a statement, Emirates NBD also reported an 80 per cent increase in net profit to AED 4.7 billion.
Additionally, the bank’s core operating profit increased two per cent year-on-year, supported by strong asset growth and higher fee income, also Emirates NBD’s net interest income improved by six per cent compared to a year earlier on asset growth that more than offset a decline in net interest margin.
The state-owned lender posted a 23 per cent surge in non-interest income surged, helped by gains in foreign exchange income and investment banking activities.
Emirates NBD stated that cost of risk had increased in 2019 to a more normalised level from relatively better credit quality conditions in 2018.
According to a Bloomberg report, Emirates NBD received approval to open 20 more branches in Saudi Arabia as the bank expands in the Arab world’s largest economy, currently, it operates two branches in Riyadh, one in Jeddah and another in Khobar in the East.
Emirates NBD recently opened additional branches in Egypt received regulatory approvals to acquire Moscow-based Sberbank’s Turkish unit, Denizbank.