Emirates NBD Records Historical AED 7.8 Billion Pre-Tax Profit in Q1 2025
Emirates NBD, a leading financial institution in the Middle East, has reported an impressive surge in profits for Q1 2025, marking a 56% year-on-year increase to AED 6.2 billion. This growth is a testament to the bank's robust performance and strategic growth initiatives.
The strong loan book expansion played a significant role in Emirates NBD's growth. The bank's loan book grew by 3.5% in Q1 2025, with an increase of AED 18 billion ($4.9 billion) in new loans. Over half of this growth came from Emirates NBD's expanding international network, particularly in retail and corporate lending, as well as momentum in Saudi Arabia where lending grew 15% in the quarter.
The bank also experienced a 5% increase in customer deposits, with AED 27 billion added in low-cost Current Account Savings Account (CASA) deposits. This growth further enhanced Emirates NBD's liquidity and funding profile.
The improved deposit mix and low-cost CASA growth helped improve the bank’s net interest margin despite lower interest rates, contributing to higher net interest income, which rose 14% to AED 8.5 billion.
Non-interest revenue growth was another key factor in Emirates NBD's profit surge. Fees and commissions income grew by 14%, indicating a diversification of income streams beyond interest income.
Asset growth and risk management also contributed to Emirates NBD's success. Total assets surpassed AED 1 trillion, reflecting a buoyant regional economy and successful regional diversification. The bank maintained a strong non-performing loan (NPL) coverage ratio of 158%, well above peers, indicating prudent loan loss provisioning and preparedness for potential credit risks.
Operational contributions from subsidiaries also played a role in Emirates NBD's profit performance. Emirates Islamic delivered AED 1 billion in quarterly profit for the first time, showcasing the strength of the bank’s Islamic finance arm. DenizBank also contributed AED 0.2 billion profit, supporting growth in Turkey.
Emirates NBD's growth strategy includes expanding its regional footprint, including investments like the potential stake acquisition in India’s RBL Bank. This helps Emirates NBD diversify its geographic exposure and tap into new growth markets.
In conclusion, Emirates NBD's impressive profit performance in Q1 2025 and its ongoing leadership among Middle Eastern banks can be attributed to several key factors: strong lending and deposit growth, diversified revenue streams, prudent risk management, and regional expansion. These factors have positioned Emirates NBD as a leading financial institution in the Middle East.
[1] Emirates NBD Q1 2025 Earnings Release [2] Emirates NBD Q1 2025 Investor Presentation [4] Emirates NBD Annual Report 2024
- The growth in Emirates NBD's profits, attributed to factors such as strong lending and deposit growth, diversified revenue streams, prudent risk management, and regional expansion, underscores the bank's robust performance in the economy and finance sector, bolstering its position as a leading business entity.
- The bank's strategic growth initiatives, including expanding its regional footprint through potential stake acquisitions like India’s RBL Bank, will likely continue to fuel investing opportunities and contribute to further growth in the Middle East's financial industry.
