Latest news with #Dh11.9
Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE: Higher premiums, no rains benefit insurance sector as profits jump to 24%
The UAE insurers' net profit increased by Dh190 million or 24 per cent to Dh987 million in the first quarter of 2025 compared to Dh797 million in the same period last year, due to increased premiums and the absence of heavy rains, which hit the country early last year, according to Badri Management Consultancy. "The first quarter of 2025 has remained bright and sunny for the UAE insurance industry. There was an absence of rains, which impacted profits slightly in the first quarter and heavily in the second quarter of 2024," said Hatim Maskawala, managing director at Badri Management Consultancy The UAE recorded heavy rains in the second week of March last year as the country recorded about 6 months of rain over two days, prompting work from home and remote learning due to flooding. This impacted the insurers as businesses and the automobile sector were hit during the heavy downpour. Following record rains last year, the UAE insurers raised motor premiums to combat the rising costs of damages. It is estimated that around 100,000 vehicles were damaged during the record rains in March and April. "The absence of rains coupled with rising premium rates has led to insurance revenue growing by 21 per cent in the first three months of 2025, reaching Dh11.9 billion versus Dh9.8 billion in the same period last year," he said. Maskawala added that the growth is expected to continue, driven by rising premiums both for motor and medical, the key lines impacting the net. Data showed that insurance service results for the analysed listed companies experienced a 70 per cent increase from Dh447 million to Dh762 million. The leading five companies recorded a 43 per cent increase collectively, moving from Dh440 million to Dh629 million during the same period last year. "The increasing concentration of revenue and profit among leading companies reflects a changing market dynamic, where scale and efficiency are key to sustainability and expansion. Going forward, the industry must align premium growth with stronger underwriting and better claims controls to maintain long-term profitability," added Maskawala. CBUAE's regulatory actions have been key in enhancing market discipline and curbing the sale of underpriced policies by financially weak insurers. Still, the industry must stay alert to increasing reinsurance costs and the lagging financial effects tied to some treaty arrangements.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
Emirates NBD's profit before tax surges 56% surge to Dh7.8b
Emirates NBD, a leading banking group in the UAE, announced a remarkable 56 per cent increase in profit before tax, reaching Dh7.8 billion for the first quarter of 2025. The bank's performance was driven by strong loan growth, an enhanced deposit mix, and innovative product offerings, propelling total income up by 11 per cent year-on-year to Dh11.9 billion. The bank's balance sheet crossed a historic milestone, with assets surpassing Dh1 trillion, fuelled by a buoyant regional economy, Dubai's largest lender said in a statement. Loan growth was a key driver, with lending increasing by Dh18 billion in Q1 2025, over half of which came from the bank's expanding international network. Deposits rose by Dh31 billion, including a record Dh27 billion surge in low-cost current and savings accounts, reinforcing the bank's strong funding base. The impaired loan ratio improved to 3.1 per cent, supported by an impairment credit of Dh0.5 billion, reflecting robust client recoveries amid favorable economic conditions. Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD, said: the profit growth was driven by strong regional expansion, increased digital adoption, an outperforming funding base and sustained loan recoveries. 'The balance sheet surpassed the Dh1 trillion milestone boosted by impressive loan and deposit growth from a buoyant regional economy.' Shayne Nelson, group chief executive officer, said the 11 per cent year-on-year increase in income was propelled by excellent loan growth and the bank's 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.' Patrick Sullivan, group chief financial officer, said the group's low-cost current and savings account deposit base grew by a record Dh27 billion in the first quarter, helping absorb the impact of lower interest rates. 'The credit environment remains healthy, and clients continue to benefit from a buoyant economy, leading to a net impairment credit of Dh0.5 billion. Retained earnings helped support strong loan growth and the rock-solid balance sheet makes Emirates NBD a regional powerhouse, providing the platform for future growth.' Emirates Islamic Emirates Islamic, a subsidiary, achieved a milestone of its own, posting quarterly profits exceeding Dh1 billion for the first time, cementing its position as a top Islamic bank in the UAE. The bank's wealth management strategy also bore fruit, with assets under management reaching $50 billion, driven by the region's growing affluent population. Emirates NBD commands a 35 per cent market share of UAE credit card spending, with over Dh50 billion in credit and debit card transactions in Q1 2025. New offerings, such as the Abu Dhabi-focused 'Darna' co-branded credit card with Aldar and free local equity trading on the ENBD X and EI+ apps, have bolstered its retail and investment appeal, the bank statement said. The bank's net promoter score of 48 underscores its leadership in customer experience. Regionally, Emirates NBD's Saudi Arabia operations saw a 15 per cent loan growth, while new lending of Dh46 billion drove 7.0 per cent retail and 6.0 per cent corporate loan growth. The bank introduced structured credit, commodity, and investment products, boosting income from both local and international clients. Emirates NBD Capital retained its top spot for UAE IPOs and MENA loans, while ranking among the top three for international sukuk.
Al Etihad
22-04-2025
- Business
- Al Etihad
Emirates NBD Group and Emirates Islamic announce robust first quarter 2025 results
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 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 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.
