Q1 2025 Emirates Nbd Bank PJSC Earnings Call Transcript
Key Points
- Emirates NBD PJSC (DFM:EMIRATESNBD) reported a 56% increase in profit before tax, reaching AED7.8 billion, driven by strong loan demand and an improved deposit mix.
- The bank's balance sheet surpassed the AED1 trillion milestone, supported by impressive loan and deposit growth.
- Emirates Islamic's quarterly profit exceeded AED1 billion for the first time, highlighting its strong position in the UAE's Islamic banking sector.
- The bank achieved a 35% market share in UAE credit card spend, demonstrating its dominance in the retail banking sector.
- Innovative products and strategic investments in digital and regional networks have successfully offset lower interest rates, contributing to a 11% year-on-year income increase.
- The potential impact of tariffs and lower oil prices could indirectly affect trade and corporate confidence, posing a risk to future growth.
- Volatility in equity and bond markets may influence consumer behavior, potentially affecting property and holiday spending.
- The bank's cost-income ratio increased to 30.9%, with costs rising 20% year-on-year due to investments in digital and international expansion.
- Denise Bank's cost of risk is expected to be at the higher end of the 100 to 200 basis points range due to high interest rates affecting retail and SME books in Turkey.
- The bank anticipates a tightening of net interest margins by 20 to 25 basis points for the full year, influenced by expected rate cuts and changes in business mix.
Ladies and gentlemen, welcome to the Emirates Nbd results call and webcast for the first quarter of 2025. 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 a call over to our host, Mr. Shayne Nelson, Group CEO of Emirates Nbd.
Thank you, Nadia, and welcome to our results call for the first quarter of 2025. We continued the strong momentum from last year, delivering another set of outstanding results and highlights for the first quarter include Emirates Nbd profit before tax, rose 56% over the preceding quarter to AED7.8 billion on strong demand for loans, and improvement in deposit mix, and the introduction of new products.
Income increased 11% year-on-year as the strategic investment in the group's regional network, digital and Gen AI is clearly generating income to successfully offset lower interest rates.
The balance sheet surpassed the AED1 trillion
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