Emirates NBD Bank (EMIRATESNBD) Q2 2024 earnings summary

Executive summary

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

• Lending surpassed AED 500 billion with 6% growth in H1 2024, driven by robust regional demand.

• All business units contributed to growth, with record retail lending, strong expansion in KSA and Turkey, and Emirates Islamic posting AED 1.7 billion profit.

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

• Upgraded guidance for loan growth and cost of risk, reflecting positive economic and credit trends.

Financial highlights

• Total income for H1 2024 reached AED 21.4 billion, up 0.4% year-on-year; net interest income rose 6% to AED 15.4 billion.

• Fee and commission income surged 64% year-on-year and 10% quarter-on-quarter.

• 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; coverage ratio at 145%.

• Total assets grew 15% year-on-year to AED 931 billion.

Outlook and guidance

• Loan growth guidance revised to high single digits for the full year, reflecting strong H1 momentum.

• Cost of risk guidance lowered 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%, with DenizBank expected to average 4%-5% for the year.

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

• Cost-to-income ratio expected to remain at or below 33%.