Q4 2025 Emirates NBD Bank PJSC Earnings Call Transcript
Key Points
- Emirates NBD PJSC (DFM:EMIRATESNBD) achieved a record profit before tax of AED27.1 billion and a profit after tax of AED23 billion in 2024.
- The bank experienced a substantial increase in lending, with over AED160 billion of new lending disbursed, resulting in a strong loan growth of 10%.
- The expansion in Saudi Arabia has been successful, with 21 branches now accounting for over 5% of group lending.
- Digital initiatives, including ENBD X and EI+ banking apps, have driven a ninefold increase in digital wealth volumes.
- The bank's balance sheet has strengthened significantly, with lower non-performing loans (NPLs) and high coverage, recognized by positive rating actions from Moody's and Fitch.
- Net interest margins (NIMs) tightened by 31 basis points during 2024 due to higher funding costs and competitive loan pricing.
- Nonfunded income decreased year-on-year, primarily due to DenizBank's variable nonclient income.
- Costs increased by 18% year-on-year, driven by strong volume growth, inflationary impacts, and accelerated depreciation of some IT systems.
- The cost of risk is expected to normalize, with guidance set at 40 to 60 basis points for 2025, indicating potential challenges in maintaining low risk levels.
- The bank's guidance for loan growth in 2025 is high single-digit, reflecting a conservative outlook due to expected sovereign repayments.
Hello, ladies and gentlemen. Welcome to the Emirates NBD results call and webcast for the fourth quarter of 2024. Today's call is being recorded. Please note that this call is open to analysts and investors only. Any media personnel should disconnect now.
I will now pass the call over to our host, Mr. Shayne Nelson, Group CEO of Emirates NBD.
Thank you, Nadia, and welcome to our results call covering the whole of 2024. 2024 has been a year of record achievements and formidable milestones. We delivered our highest ever profit before tax of AED27.1 billion and a profit after tax of AED23 billion driven by a substantial increase in lending, a stable low-cost funding base, and healthy recoveries. We have also successfully grown our income by 3% despite 100 basis points of interest rate cuts last year. This phenomenal performance is a result of our expanded regional network and our continued investment in digital, advanced analytics, and Gen AI.
Our Saudi expansion is clearly
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