Q2 2025 Emirates Nbd Bank PJSC Earnings Call Transcript
Key Points
- Emirates NBD PJSC (DFM:EMIRATESNBD) reported a 12% increase in income for the first half of 2025, driven by strong loan growth and an 18% rise in non-funded income from new products and services.
- The bank achieved an 8% growth in lending, with significant contributions from its international network, particularly in KSA, Egypt, India, Singapore, and London.
- Deposits increased by AED70 billion, with AED47 billion in low-cost CASA, maintaining a diversified and resilient funding platform.
- Emirates NBD PJSC (DFM:EMIRATESNBD) maintained a strong market position in the UAE, with a 35% market share of credit card spend, translating to over AED100 billion spent on credit and debit cards in the first half.
- The bank received a credit rating upgrade from Moody's, aligning its credit rating with leading global institutions, reflecting its financial stability and strong performance.
- Profit before tax was slightly lower due to AED2 billion less in credit recoveries compared to the same period last year.
- The net interest margin tightened by 12 basis points year-on-year, impacted by last year's rate cuts and higher funding costs at DenizBank.
- Bottom line profit decreased by 9% to AED12.5 billion for the first half, influenced by a higher 15% tax rate compared to 9% last year.
- The cost of risk guidance was lowered, with DenizBank expected to have a higher cost of risk due to prolonged high interest rates.
- The bank's operating expenses rose by 18%, driven by investments in international network expansion and digital infrastructure, impacting the cost-income ratio.
Ladies and gentlemen, welcome to the Emirates NBD results call and webcast for the first half of 2025. Today's call is being recorded. Please note that this call is open to analysts and investors only, any media, personnel should now disconnect.
I will now pass the call over to our host, Mr. Shayne Nelson, Group CEO of Emirates NBD.
Thank you, Drew, and welcome to our results call for the first half of 2025. Strong momentum across our footprint continued throughout the first half, enabling us to deliver another set of outstanding results. Our best hedge against falling interest rates is to drive loan growth and broaden our product offering.
The success of this strategy is clearly evident, as one, we delivered 12% higher income in the first half, helped by a strong loan growth, a low cost funding base, and an 18% jump in non-funded income from new products and services.
Profit before tax was slightly lower for the first half, and although we had a recovery credit,
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