Latest news with #ShayneNelson
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.
Arabian Business
22-04-2025
- Business
- Arabian Business
Emirates NBD's balance sheet crosses AED1 trillion after strong Q1 numbers
Emirates NBD 's balance sheet surpassed the AED1 trillion (US$272.3 billion) milestone in the first quarter of 2025, as the bank posted strong results, including a 56 per cent rise in profit before tax to AED7.8 billion (US$2.12 billion) and an 11 per cent year-on-year increase in income. The performance followed another quarter with strong lending momentum, an improvement in deposit mix, and new products. Impressive loan and deposit growth in a buoyant regional economy boosted the balance sheet. Deposits grew by 5 per cent (AED31 billion), driven by a record AED27 billion (US$7.35 billion) increase in low-cost current and savings account balances. Loans grew AED18 billion (US$4.9 billion) during the quarter, with over half of the increase sourced from the bank's growing international network. Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD, commented: 'Emirates NBD's profit before tax grew substantially by 56 per cent to AED7.8 billion in the first quarter of 2025, driven by strong regional expansion, increased digital adoption, an outperforming funding base and sustained loan recoveries. 'All business units achieved outstanding performance as they delivered higher income year-on-year. The Group delivered a very impressive 3.5 per cent loan growth in Q1 as lending grew AED18 billion, with over half of the increase being sourced from our growing international network.' Earlier this year, Emirates NBD acquired the remaining 0.11 per cent stake in Emirates Islamic Bank (EIB) to take full ownership and delisted it. In the first quarter, Emirates Islamic's quarterly profitability crossed the AED1 billion mark for the first time ever. Shayne Nelson, Group Chief Executive Officer, added: 'Emirates NBD delivered an 11 per cent 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. 'We continue to develop strategic partnerships to accelerate advanced digital payment solutions for clients and have expanded our collaboration with three exciting FinTech companies ranging from blockchain-based payments to international beneficiary validation.' Emirates NBD reported impairment credit of AED0.5 billion on impressive recoveries as clients benefit from a buoyant regional economy. Impaired loan ratio improved to 3.1 per cent. The bank now enjoys a 35 per cent market share of UAE credit card spend, with over AED50 billion credit and debit card spend during the quarter. Patrick Sullivan, Group Chief Financial Officer said: 'The group's low-cost Current and Savings Account deposit base grew by a record AED27 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 AED0.5 billion.'
Gulf News
22-04-2025
- Business
- Gulf News
Dubai's Emirates NBD clears Dh1 trillion balance-sheet milestone in Q1-2025
Dubai: Emirates NBD's profit before tax stirred up a sharp 56% quarter-to-quarter growth to Dh7.8 billion for the first three months of 2025. The key fundamentals - 'lending momentum, improvement in deposit mix and new products' - were all in play. Net profit too was up 56% q-to-q to Dh6.2 billion. But on a year-to-year basis, Emirates NBD's net profit is down from the Dh6.7 billion for Q1-2024. The Dubai bank's balance-sheet cleared the Dh1 trillion milestone, in large part helped by the 'impressive' loan and deposit growth. Deposits grew by 5%, driven by a 'record' Dh27 billion increase in current and savings account balances. "All business units achieved an outstanding performance as they delivered higher income year-on-year," said Hesham Abdulla Al Qassim, Vice-Chairman and Managing Director of Emirates NBD. Loans were up Dh18 billion - and with more than half of the increase sourced from the growing International network. Emirates NBD is among the handful of leading UAE banks that have incrementally built up a network outside as well, and the Q1 numbers show some of that work is indeed paying off. "In Egypt, inflation is continuing to come under control which should allow the private sector to expand while Turkey's monetary policy is helping to curb inflation," said Emirates NBD in a statement. The entity has a sizable presence in these markets. When it comes to the UAE and Saudi Arabia, 'oil production is due to increase in both this year, while revenue diversification is helping to provide some insulation to the economies from volatility in oil price." 'Offset lower interest rate' "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," said Shayne Nelson, Group CEO. (The US Fed had trimmed interest rates over the recent past, which has also been immediately reflected in the UAE banking sector.) The bank has also been working on its higher margin offerings, especially the recent arrangement with BlackRock to expand access for Emirates NBD's high networth clients to private market options. There is also the UAE bank's 35% market share of local credit card spend, with over Dh50 billion in credit and debit card spend in Q1-25.
Khaleej Times
16-02-2025
- Business
- Khaleej Times
UAE: Short-term job displacement to lead to reinvention as AI shapes GCC banking
The GCC banking sector is navigating a pivotal transformation as artificial intelligence (AI) disrupts traditional workflows, displacing routine roles while creating demand for tech-driven expertise. With the UAE spearheading innovation, economists warn of short-term labour market turbulence but emphasise long-term gains in productivity, customer experience, and economic diversification. The UAE's ambition to achieve a 90 per cent cashless economy by 2026 has turbocharged AI adoption. Digital wallets like Aani and neobanks (Wio, Yap) dominate, with 50 per cent of UAE customers using digital-only services. Wio alone captures one-third of new SME accounts, leveraging AI for real-time financial analytics. To mitigate displacement, the UAE is investing heavily in reskilling. Emirates NBD's digital upskilling initiative, endorsed by CEO Shayne Nelson, trains employees in AI management and data literacy. The government has allocated $135 million to AI education programs, including partnerships with Mohamed bin Zayed University of Artificial Intelligence. 'Our goal is adaptation, not displacement,' says UAE AI Minister Omar Sultan Al Olama. AI's rapid adoption is reshaping hiring strategies. A PwC report estimates 55 per cent of GCC banking roles — particularly in customer service, compliance, and back-office operations — could be automated within a decade. RAKBANK's AI chatbots now resolve 85 per cent of routine inquiries without human intervention, while Emirates NBD uses machine learning to cut loan approval times by 70 per cent. Goldman Sachs' recent deployment of its 'GS AI assistant' for 10,000 employees — tasked with email summarisation, code translation, and document proofreading — mirrors regional trends. 'In 3–5 years, AI could blur lines between human and machine roles,' predicts Goldman CIO Marco Argenti. Globally, Bloomberg Intelligence warns 200,000 banking jobs may vanish by 2030, with repetitive tasks at highest risk. In the GCC, 80 per cent of recruiters anticipate AI-driven workforce shifts, per regional surveys, with 19 per cent expecting over half of HR tasks — like candidate screening — to be automated. 'AI won't replace jobs but transform them. Administrative roles will shrink, freeing professionals for strategic work,' argues Mira Nasser, a UAE-based L&D lead. Globally, the World Economic Forum projects AI will create 97 million jobs by 2025, including roles in AI training, cybersecurity, and ethical governance — fields the UAE is prioritising. 'Skilled workers who embrace AI integration will thrive,' notes economist Omar Fadhel. McKinsey & Company estimates AI could boost banking productivity by 40 per cent by 2030, with GCC banks already reporting fewer errors in fraud detection and faster credit decisions. 'AI slashed our 'time to decision' for loans from days to hours,' says Suvo Sarkar, CEO of Dubai-based 3D Advisory. However, ethical concerns persist. The IMF warns 40 per cent of global jobs face disruption, while biased algorithms and cybersecurity vulnerabilities threaten trust. "AI adoption must be responsible. Regional collaboration on regulation is critical,' urges Dr. Ayman El-Sherbiny of the UN's Economic and Social Commission for West Asia. The GCC's AI transition is irreversible. Open banking frameworks and AI-driven analytics are projected to deliver a $320 billion economic boost to the Middle East by 2030, with the UAE contributing $96 billion. Saudi Arabia expects AI to account for 12 per cent of GDP by 2030, while the IMF forecasts a 35 per cent GDP surge for the UAE. Yet human skills remain irreplaceable. 'AI lacks emotional intelligence and creativity — cornerstones of client relationships and innovation,' says Abu Dhabi HR strategist Shamma Hazza. Hybrid roles blending technical and soft skills are emerging, with demand rising for 'AI translators' who bridge tech and business teams. The GCC banking sector's AI journey underscores a universal truth: disruption breeds reinvention. While traditional roles decline, institutions like Emirates NBD and Wio Bank exemplify how strategic reskilling and customer-centric innovation can turn challenges into opportunities. As Sarkar notes, '2025 will separate winners from observers. The future belongs to those merging human ingenuity with AI's precision.'
