- Emirates NBD’s second-quarter operating income reached 12.1 billion dirhams, surpassing the estimate of 11.68 billion dirhams.
- Net income was 6.3 billion dirhams, beating the projection of 5.49 billion dirhams.
- Impairments stood at 200 million dirhams.
- Pretax profit amounted to 7.7 billion dirhams, exceeding the anticipated 6.82 billion dirhams.
- Net interest income was slightly below estimates, at 8.4 billion dirhams compared to 8.71 billion dirhams expected.
- Net fee and commission income increased by 15% year-over-year, totaling 2.01 billion dirhams.
- Earnings per share (EPS) reached 0.98 dirhams, above the forecasted 0.85 dirhams.
- The cost to income ratio improved to 29.7%, better than the predicted 30.6%.
- Net interest margin dropped to 3.36%, lower than the expected 3.55%.
- Total assets grew by 17% year-over-year to 1.09 trillion dirhams, surpassing the estimate of 1.05 trillion dirhams.
- Total deposits increased by 18% year-over-year, amounting to 737 billion dirhams, above the estimate of 709.44 billion dirhams.
- In the first half of the year, Dubai property transactions increased, though price growth is moderating.
- Lending in Saudi Arabia has grown 27% year-to-date, with plans to open three more branches by the end of the year.
- The net interest margin (NIM) decreased due to a 350 basis-point rate hike in Turkey and loan repricing following 100 basis-point US rate cuts.
- NIMs are expected to finish 2025 within the 3.3-3.5% guidance range, considering second-half rate cuts and recovery of DenizBank margins.
- The 2025 cost of risk guidance is lowered to 20-40 basis points due to “strong” recoveries, despite expected credit deterioration at DenizBank.
- Guidance for non-performing loans has been revised to below 3%.
- Loan growth guidance has been adjusted to low-double-digit growth.
A look at Emirates NBD Bank PJSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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, shows a promising long-term outlook based on the Smartkarma Smart Scores analysis. With solid scores in Value, Growth, Resilience, and Momentum, the company exhibits strengths across various key factors. A high score in Value indicates that Emirates NBD Bank PJSC is undervalued compared to its competitors, while a strong growth score suggests potential for expansion and development. Additionally, a robust momentum score reflects the company’s positive trend in performance. Although the dividend score is moderate, the overall outlook remains optimistic, positioning Emirates NBD Bank PJSC favorably for future growth and success.
Emirates NBD PJSC, specializing in banking and financial services, operates with a diversified business model that includes corporate and institutional, retail, and private banking services. As a leading player in the market with headquarters in Dubai, United Arab Emirates, the company also offers treasury services and Islamic banking products. The combination of these services, along with the favorable Smartkarma Smart Scores across key factors, suggests a bright future for Emirates NBD Bank PJSC in the long term, reinforcing its position as a resilient and forward-looking institution in the banking industry.
### Summary: Emirates NBD PJSC conducts banking and financial service activities. The Bank’s business segments include corporate and institutional, retail, and private banking. Emirates NBD also offers treasury services and Islamic banking products, with headquarters in Dubai, United Arab Emirates. ###
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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