Dubai's Biggest Bank Boosts 2018 Profit 20%, Beats Estimates
(Bloomberg) -- Emirates NBD PJSC reported a better-than-expected increase in full-year profit as lending rose and loan loss charges fell at Dubai’s biggest bank.
The state-controlled lender recommended a dividend of 40 fils a share, unchanged from a year ago.
- FY net income 10.04 billion dirhams ($2.73 billion) vs 8.35 billion dirhams
- Mean estimate 9.9 billion dirhams (range 9.57 billion - 10.2 billion; Bloomberg data)
- Total income 17.4 billion dirhams vs 15.5 billion dirhams
- Mean estimate 17.4 billion dirhams (range 17 billion dirhams - 17.6 billion dirhams)
- Net interest income 12.9 billion dirhams vs 10.8 billion dirhams
- Non-interest income 4.51 billion dirhams vs 4.67 billion dirhams
- General & administrative expenses 5.62 billion dirhams 4.84 billion dirhams
- Impairment allowances 1.75 billion dirhams vs 2.23 billion dirhams
- Loans 327.9 billion dirhams vs 304.1 billion dirhams
- Deposits 347.9 billion dirhams vs 326.5 billion dirhams
- Net interest margin 2.82 percent vs 2.47 percent
- Impaired loan ratio 5.9 percent vs 6.2 percent
"Margins widened 35 bps in 2018 as rate rises flowed through to the loan book which more than offset a rise in funding costs," Group Chief Executive Officer Shayne Nelson said. "The group’s balance sheet remains healthy with a further strengthening in capital coupled with strong liquidity and stable credit quality."
- Emirates NBD is the United Arab Emirates’ second-biggest bank with assets of $136 billion; top lender is First Abu Dhabi Bank
- The bank agreed to buy Turkey’s Denizbank AS last year, for which it is now seeking regulatory approval
- It is said to have held off from selling a dollar bond in November as interest rates climbed
- The bank is rated A3 at Moody’s; A+ at Fitch. All have stable outlooks.
- Click here for credit rating profile: EMIRATES UH Equity CRPR
- Emirates NBD is the third big regional lender to report results after Qatar National Bank and Bank Muscat, both of which beat estimates for full-year earnings.
- Qatar National Bank Profit Climbs 5% as Interest Income Climbs
- Bank Muscat Full Year Net Income 1.3% Above Estimates
For financial statement, click here.
- Emirates NBD shares dropped 2.1 percent at close in Dubai on Tuesday
- Stock advanced 8.4 percent in the past 52 weeks. The Dubai Stock Index lost 29 percent.
- The shares are down 1 percent in the past 5 days and rose 1.1 percent in the past 30 days.
- Emirates NBD trades at 5.2 times its estimated earnings per share for the coming year.
- The company’s dividend yield is 4.4 percent on a trailing 12-month basis and 4.4 percent based on Bloomberg Dividend Forecasts for the next 12 months.
- The analyst consensus one-year price target for the company is AED14.78, for a potential return of 64 percent. Analysts raised the target by 6.7 percent in the past three months.
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