- Emirates NBD’s operating income for the first quarter is 11.9 billion dirhams, surpassing estimates and increasing by 11% compared to the previous year.
- The bank’s net income stands at 6.2 billion dirhams, a decrease of 7.5% year-over-year, yet still above estimates of 5.47 billion dirhams.
- Impairments increased by 44% from the previous year, totaling 500 million dirhams.
- Pretax profit rose by 2.6% year-over-year to 7.8 billion dirhams, beating the estimate of 7.01 billion dirhams.
- Net interest income has grown by 15% year-over-year, reaching 8.5 billion dirhams.
- The bank reported a 14% increase in Net Fee & Commission income, totaling 1.89 billion dirhams.
- Earnings per share dropped to 0.96 dirhams from 1.04 dirhams the previous year but exceeded the estimated 0.86 dirhams.
- The cost to income ratio increased to 30.9% compared to 28.8% last year.
- Net interest margin saw a slight rise to 3.58% from 3.52% year-over-year.
- Total assets grew by 14% compared to the previous year, reaching 1.03 trillion dirhams.
- Total deposits also increased by 14%, amounting to 698 billion dirhams.
- The low-cost deposit base, which grew by 27 billion dirhams, aided in absorbing the effects of lower interest rates.
- The credit environment remains robust with clients benefiting from a strong economy, resulting in a net impairment credit of 0.5 billion dirhams.
- The bank maintains its cost of risk guidance at 40-60 basis points for 2025 in anticipation of potential credit deterioration in DenizBank.
- The net interest margin decreased by 7 basis points quarter-over-quarter to 3.58% due to a 100 basis point rate cut in the second half of 2024.
- The bank expects the cost to income ratio to remain under 33% for 2025.
A look at Emirates NBD Bank PJSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Emirates NBD Bank PJSC, a prominent player in the banking sector with headquarters in Dubai, United Arab Emirates, is poised for a favorable long-term outlook based on its Smartkarma Smart Scores. With a solid Value score of 4, the company is seen as financially attractive. Additionally, Emirates NBD garners a Growth score of 4, indicating promising prospects for expansion. While its Dividend and Resilience scores stand at 3, showcasing stability and moderate dividend payouts, the company also maintains a Momentum score of 3, hinting at steady operational performance.
Emirates NBD Bank PJSC, known for its banking and financial services, operates across corporate, retail, and private banking segments, offering a wide range of services including treasury and Islamic products. With an overall positive outlook based on its Smart Scores, Emirates NBD is positioned to navigate the market effectively and potentially deliver sustained growth and value to its stakeholders in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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