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Emirates NBD reports its Q1 results with profit of AED 2.3 billion up 12% YoY and up 76% QoQ

20 Apr, 2021

Emirates NBD’s strong Q1 results enable it to accelerate the pace of investment in digital and in its international network to support future growth. Its profitability and strong capital also enables it to maintain very prudent levels of credit impairment coverage. Emirates NBD’s strong balance sheet and liquidity allow it to continue supporting its customers and clients on the path to recovery from the global pandemic. We are proud to be the first bank from the Gulf Region to issue a USD 1.75 billion ESG-linked syndicated loan.

Strong operating performance on improving economic conditions coupled with effective cost management

• Total income up 25% q-o-q to AED 6.2 billion on a marked recovery of non-funded income and higher net interest income as NIMs successfully absorbed the unprecedented rate cuts of 2020
• Expenses declined 9% y-o-y and q-o-q to AED 1.9 billion on effective cost management discipline
• Impairment allowances reduced 31% y-o-y with a substantially lower net cost of risk at 158 bps following proactive provisioning in previous quarters
• Net profit improved 12% y-o-y and 76% q-o-q to AED 2.3 billion on improving economic conditions with DenizBank adding significant diversification to the Group
• Net interest margin increased to 2.46% with lower cost of funding from strong CASA growth mitigating NIM reduction in DenizBank after Q4 2020 and Q1 2021 rate increases


Strong capital and liquidity combined with a healthy deposit mix and higher profits enable the Group to provide continued support to customers and clients

• Total assets stable during the first quarter at AED 695 billion maintaining a strong asset base
• Customer loans at AED 436 billion with strong demand for personal loans, auto loans and mortgages
• Deposit mix improved further with CASA increasing by AED 16 billion to 56% of total deposits
• Credit Quality: NPL ratio improved 0.1% to 6.1% with Coverage ratio strengthening to 125.1% reflecting our prudent approach to credit impairment
• Capital and Liquidity: 165.1% Liquidity Coverage Ratio and 15.6% Common Equity Tier-1 ratio reflect the Group’s core strengths enabling continued support to customers and the wider community

Emirates NBD continues to support customers and enable banking through many innovative digital channels. The Group’s progressive strategy is visible through further international expansion and successful ESG initiatives.

• Customer deferral repayments: AED 10.3 billion of support provided to over 110,000 customers
• Customer Repayments: AED 5.5 billion of repayments demonstrate the Group’s successful efforts in mitigating the financial impact on customers from Covid-19
• Investment Banking: Emirates NBD Capital raised over USD 18 billion for 24 clients located in 12 countries
• ESG: Emirates NBD was the first bank from the Gulf region to issue an ESG-linked syndicated loan. The cost of the USD 1.75 billion facility is based on the percentage of women in senior management and water efficiency
• ESG: The Group continued with its successful environmental and social initiatives, through green and social banking offerings and financial contributions to the local community
• Social responsibility: Over 60% of UAE branches now provide disability-friendly access and over 1,500 employees are trained in sign language and disability etiquette
• DenizBank: Raised USD 435 million of term funding through a multi-tenor and multi-currency ‘Diversified Payment Rights’ transaction, attracting a range of international investors
• Digital: Payments using Apple Pay, Samsung Pay, and Google Pay more than doubled in 2020 and momentum in contactless payments continues in Q1 2021
• International Expansion: Increased branch network in KSA to six and became the first foreign bank to be granted permission to open branches in Madinah and Makkah

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said:

"Emirates NBD’s increase of Q1 profit to AED 2.3 billion, up 12% y-o-y, reflects the resilience and gradual economic recovery following the global disruption in 2020.

We recently published our 2020 Corporate Social Responsibility report highlighting the Group’s achievements and commitment to environmental and social issues.

Emirates NBD will mark the ’Year of the 50th’ with a number of events which will recognise the UAE’s achievements over the last 50 years and inspire the Nation’s youth to develop their vision for the next 50 years with innovation and creativity.”

Shayne Nelson, Group Chief Executive Officer said:

“I am proud of the way our colleagues at Emirates NBD have focused on supporting customers and clients, and with that a 12% improvement in profitability y-o-y and up 76% q-o-q.

These strong Q1 results enable us to accelerate the pace of investment in digital and in our international network to support future growth.

In Q1-21, Emirates NBD expanded its branch network in the Kingdom of Saudi Arabia with new branches in Madinah and Makkah.

In March 2021, Emirates NBD issued a USD 1,750 million ESG-linked syndicated loan with pricing linked to further improvements in water utilisation and the percentage of women in senior management. This is the first such loan issued from a bank in the Gulf region.

Economic growth is expected to improve this year in all the countries that the Group operates in.

Contactless payments now make up 84% of Emirates NBD’s face-to-face payment transactions as consumers embrace touch-free technology. Mobile-wallet based payments using Apple Pay, Samsung Pay and Google Pay more than doubled in 2020 as customers increasingly use personal devices to make payments.”

Patrick Sullivan, Group Chief Financial Officer said:


“Emirates NBD delivered a 12% increase in profit y-o-y to AED 2.3 billion with the significant impact of lower interest rates being more than offset by significantly lower credit impairment, and good cost discipline. The 76% increase in profit q-o-q reflects a strong recovery of non-funded income, particular in our Turkish unit, DenizBank.

Emirates NBD’s strong balance sheet and liquidity enables us to continue to supporting customers and clients on the path to recovery from the global pandemic. Our profitability and strong capital also enables us to maintain very prudent levels of credit impairment coverage, putting us on a very strong footing.”
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