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Dubai’s Emirates NBD beats 2024 Q2 profit estimates, rebrands private banking unit

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At the end of the 2024 second quarter, Emirates NBD's total assets increased to 931 billion dirhams, up 15% from 2023, while lending increased by 6% during the first half of the year

Emirates NBD, the largest bank in Dubai in terms of assets, beat forecasts when it revealed a 13% increase in net profit for the second quarter of 2024, largely due to loan growth and the successful operations of its Emirates Islamic division.

The net profit attributable to shareholders increased to 7.1 billion dirhams (USD 1.93 billion) from 6.2 billion dirhams from April to June of 2023.

London Stock Exchange Group (LSEG) data shows that analysts had projected a 5.265 billion dirham profit. The bank’s Islamic division produced its best-ever results during the quarter, and its Turkey-based lender DenizBank saw improved margins as well as “significant recoveries bolstered by a buoyant economy,” according to a statement from CEO Shayne Nelson.

The Gulf region’s growth prospects have helped banks in the United Arab Emirates (UAE), where Emirates NBD is one of the biggest, as regional governments increase investment in growing non-oil sectors and diversifying revenue streams.

The emirate’s statistics centre states that Dubai, which has the tallest skyscraper in the world and man-made islands shaped like palm trees, is one of the cities that is growing the fastest in the world, with a population of 3.6 million.

Its property market has exploded amidst a rapid economic recovery following the COVID pandemic, aided by loosened residency regulations.

At the end of the 2024 second quarter, Emirates NBD’s total assets increased to 931 billion dirhams, up 15% from 2023, while lending increased by 6% during the first half of the year.

The second quarter saw an improvement in the group net interest margin (NIM), which increased to 3.65% from 3.52% in the prior quarter. DenizBank’s NIM increased due to favourable loan pricing and stable funding costs.

Meanwhile, recently Emirates NBD and CARS24 have partnered to enable UAE car buyers to start the auto loan application process through the former’s platform.

Emirates NBD has, meanwhile, unveiled a new brand proposition for its private banking (PB) division under the theme ‘Opportunities to Inspire’. The department will be focussing on three pillars: succession planning, expansion and growth and investment opportunities.

With a wide client base including HNWI (high-net-worth individuals) and UHNWI (ultra-high-net-worth individuals), families and institutional investors as well as intermediaries, Emirates NBD’s private banking business has witnessed steady growth from its core Gulf and South Asian client segments in 2015. This includes growth across all its international locations, namely Riyadh, London and Singapore with a significant increase in income.

Saod Obaidalla, executive vice-president and head of private banking, who was recently promoted to lead the NBD’s global private banking business, told the Khaleej Times, “Opportunities to Inspire underlines the value proposition we offer to our clients. Guided by our new brand strategy, an experienced team will deliver a range of investment solutions to our clients.”

Suvo Sarkar, senior executive vice-president and group head of retail banking and wealth management, Emirates NBD, added, “As a UAE-based wealth manager with international booking centres, we are able to offer our clients growth opportunities in the region and beyond to fulfil their financial goals and aspirations. Our team of investment professionals and research analysts combine local expertise with an international market view.”

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