Emirates NBD Group and Emirates Islamic announce robust first quarter 2025 results

Al Etihad

22-04-2025

22 Apr 2025 11:45
A. SREENIVASA REDDY (ABU DHABI)Emirates NBD and its subsidiary, Emirates Islamic, have both released their financial results for the first quarter of 2025, showcasing strong growth and profitability amidst a buoyant regional economy. Emirates NBD Group announced a substantial 56% increase in profit before tax, reaching Dh7.8 billion. This impressive growth was underpinned by strong lending momentum, an improved deposit mix, and the successful introduction of new products, which collectively drove an 11% year-on-year rise in income to Dh11.9 billion. Its net profit stood at Dh6.2 billion. The bank's balance sheet also achieved a significant milestone, surpassing Dh1 trillion, fuelled by robust loan and deposit growth.Shares of Emirates NBD opened half a percentage point higher on the Dubai Financial Market (DFM) following buoyant results. Deposits at Emirates NBD saw a 5% increase, bolstered by a record Dh27 billion surge in low-cost Current and Savings Account balances. Loans grew by Dh18 billion during the quarter, with more than half of this expansion originating from the Group's growing international network. Meanwhile, Emirates Islamic reported a record-breaking quarterly net profit of Dh1 billion, marking a 24% increase compared to the same period last year. Total income peaked by 8% year-on-year to reach Dh1.45 billion, driven by higher funded and non-funded income. Total assets increased by 11% to Dh123 billion during the first quarter of 2025. Customer deposits increased by 8% to Dh83 billion in Q1 2025 with Current Account and Savings Account balances at a very healthy 71% of total deposits.Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, expressed his satisfaction with the results, stating, "Emirates NBD's Profit before tax grew substantially, driven by strong regional expansion, increased digital adoption, an outperforming funding base and sustained loan recoveries. All business units achieved an outstanding performance as they delivered higher YoY income. The bank commands a 35% market share of UAE Credit card spend, and we processed more than Dh50 billion Credit and Debit card spend in the first quarter of 2025.' Shayne Nelson, Group Chief Executive Officer of Emirates NBD, said, 'Emirates NBD delivered an 11% year-on-year increase in income, propelled by excellent loan growth and our ability to attract and retain low-cost deposits. The Group's ability to substantially grow income is a direct benefit of the strategic investment in our regional footprint, Digital and GenAI, helping to offset the impact of lower interest rates. Innovative products have successfully harnessed key growth areas, including Private Banking, Wealth Management, Escrow, regional Corporate growth and Investment Banking.' Commenting on the results, Farid AlMulla, Chief Executive Officer, Emirates Islamic, said: 'Emirates Islamic continues to be at the forefront of driving digital banking innovation in the Islamic financial services sector, providing our customers with best-in-class solutions through our digital banking channels. We continue to add innovative services to our digital banking platforms, giving our retail and business customers the convenience of banking anytime, from anywhere.'
Emirates NBD and Emirates Islamic are both listed on the Dubai Financial Market (DFM). However, Emirates Islamic's shares are not currently being traded, as its parent company, Emirates NBD, is in the process of acquiring 100% ownership of the bank and delisting it from the DFM. Despite the planned delisting, Emirates Islamic is expected to retain its separate corporate identity. The parent company of the Emirates NBD Group is Investment Corporation of Dubai, a company in which the Government of Dubai is the majority shareholder, according to the information available on the DFM website.