- Emirates NBD reported a net income of 23 billion dirhams for the fiscal year, marking a 7% year-over-year increase but missing the estimate of 23.79 billion dirhams.
- The bank’s operating income rose by 2.6% to 44.1 billion dirhams, slightly below the estimated 44.19 billion dirhams.
- Operating expenses surged by 18% to 13.8 billion dirhams, exceeding the estimate of 12.67 billion dirhams from two sources.
- Impairments fell dramatically by 97% to 100 million dirhams.
- A dividend of 1 dirham per share was declared.
- Net interest income increased by 7.6% to 32.4 billion dirhams, slightly surpassing the estimate of 32.08 billion dirhams.
- Earnings per share (EPS) were 3.56 dirhams, compared to 3.32 dirhams the previous year and below the estimate of 3.63 dirhams.
- The cost to income ratio increased to 31.2% from 27.2% the previous year.
- The net interest margin was 3.64%, falling from 3.95% and below the estimate of 3.83%.
- The cost of risk dropped to 0% from 0.71% year-over-year.
- Return on tangible equity decreased to +21.8% from +24.3% the previous year.
- The non-performing loans (NPL) ratio improved to 3.3% from 4.6%, and better than the estimate of 3.92%.
- Total assets rose by 16% to 997 billion dirhams, exceeding the estimated 970.16 billion dirhams.
- Loans grew by 10% to 529 billion dirhams, surpassing the estimate of 514.28 billion dirhams.
- Total deposits increased by 14% to 667 billion dirhams, above the estimated 655.45 billion dirhams.
- The NPL coverage ratio decreased to 156% from 163%, below the estimate of 158.8%.
- The capital adequacy ratio slightly declined to 17.1% from 17.6%.
- The Tier 1 ratio fell to 16% from 16.5% the previous year.
- Growth momentum in the UAE and Saudi Arabia is expected to continue in 2025, supported by ongoing investment programs and increased oil production.
- Inflation in Egypt is anticipated to come under control, allowing for a shift in monetary policy. Turkey’s monetary policy is also noted as effective in curbing inflation.
- The bank anticipates the cost to income ratio to be equal to or less than 33% in 2025.
- Net interest margin for 2025 is expected to be between 3.3%-3.5%.
- Loan growth is projected to be in the high single digits in 2025.
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A look at Emirates NBD Bank PJSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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 banking institution based in Dubai, United Arab Emirates, is positioned favorably for long-term growth according to its Smartkarma Smart Scores. The bank has received solid scores across key factors including value, dividend, growth, momentum, and resilience. These scores reflect a positive outlook for the company in terms of its financial performance and stability.
Emirates NBD Bank PJSC operates in various segments such as corporate and institutional, retail, and private banking while also providing treasury services and Islamic banking products. With strong scores in value, dividend, growth, momentum, and resilience, Emirates NBD is poised to continue its growth trajectory and maintain a solid position in the banking and financial services sector.
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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