Dubai – Mubasher: Emirates NBD, listed on the Dubai Financial Market (DFM), reported a 49% year-on-year surge in its net profit for the first half of 2019.

Net profit stood at AED 7.5 billion in the six-month period ended 30 June 2019, versus AED 5.01 billion in the year-ago period, the leading bank said in a statement.

Earnings per share (EPS) amounted to AED 1.28 at the end of June, versus AED 0.85 in H1-18.

The bank’s operating profit increased by 8% in H1-19 to AED 5.47 billion, including a gain on disposal of a stake in Network International of AED 2.1 billion.

Net interest income grew by 10% year-on-year to AED 6.85 billion during the first six months of the year, while non-interest income rose by 20% to AED 2.676 billion on the back of higher foreign exchange revenue and increased investment banking activity, Emirates NBD added.

Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD said: “Emirates NBD delivered a healthy set of results in the first half of 2019. The Group continues to make progress on international growth. Emirates NBD is honoured to have been given permission to open twenty more branches in the Kingdom of Saudi Arabia.”

“The Bank has opened additional branches in Egypt and all regulatory approvals for the Group’s acquisition in Turkey have been granted. In support of the ‘Year of Tolerance’, launched by His Highness Sheikh Khalifa bin Zayed Al Nahyan, Emirates NBD has participated in programmes and initiatives that celebrate the nation’s unity and commitment to diversity,” he added.

Moreover, the lender’s pre-impairment operating profit reached AED 6.70 billion in H1-19, up 15% year-on-year from AED 5.80 billion.

Total assets amounted to AED 537.8 billion as at 30 June 2019, compared to AED 477.5 as at 30 June 2018, the bank revealed.

The bank’s loans stood at AED 337.7 billion at the end of June 2019, versus AED 316.4 in H1-18.

Furthermore, deposits totalled AED 366.7 billion during the six-month period, versus AED 335 billion of the prior-year period, Emirates NBD said.

The bank’s balance sheet maintained the solid performance with further enhancement in liquidity and the Common Equity Tier 1 capital ratio and stable credit quality.

“As at 30 June 2019, the Bank’s Common Equity Tier 1 ratio is 17.4%, Tier 1 ratio is 20.4% and Capital Adequacy Ratio is 21.5%,” the lender noted.

In H1-19, the bank’s costs reached AED 2.82 million, up 7% year-on-year due to an increase in staff costs relating to international expansion, digital and technology.

In April, Emirates NBD announced it had logged AED 2.7 billion in net profit for the first quarter of 2019, up 15% year-on-year.

It is worth noting that Moody's Investors Service had previously assigned a B1(hyb) rating to the $1 billion perpetual non-cumulative Additional Tier 1 (AT1) capital securities issued by Emirates NBD.