Emirates NBD reported strong income growth during the first half of the year. However, its net profit still declined compared to last year. The bank’s income rose 12 percent to Dh23.9 billion, driven by loan growth and expansion.
Despite the Emirates NBD income growth, profit fell 9 percent to Dh12.5 billion. This decline came as operating expenses surged by 19 percent, reaching Dh7.3 billion. The increase in spending limited the impact of rising revenues across the bank’s operations.
The bank recorded Dh41 billion in loan growth, which reflects an 8 percent increase. Emirates NBD expanded its lending through its growing international network. The bank also achieved a 10 percent increase in deposits, growing by Dh70 billion during the same period.
Out of the Dh70 billion deposit growth, Dh48 billion came from current and savings accounts. These low-cost CASA deposits continue to strengthen the bank’s position in the UAE market. The management highlighted efforts to protect and grow its deposit base.
Emirates NBD income growth was supported by new product offerings and broader regional operations. The bank continues to develop innovative financial services to attract new customers and grow market share. This strategy has helped offset the effects of reduced interest rates.
Operating profit rose 9 percent as loan and deposit activity remained strong. The bank noted that this performance managed to balance out the impact of interest rate cuts. Profit before tax stood at Dh15.4 billion, even after lower recoveries than the previous year.
However, the bank paid Dh2.9 billion in tax expenses. The higher tax rate affected the final net income, contributing to the overall profit drop. Emirates NBD said the new tax environment created new challenges for financial institutions.
Despite the profit drop, Emirates NBD income growth remains steady and well-supported. The bank’s stock performed strongly on the Dubai Financial Market. The share price reached Dh26.5, marking a nearly 25 percent rise for the year.
The Chief Executive Officer praised the bank’s efforts in securing low-cost deposits. The financial team also emphasized continued investment in customer solutions and market expansion. They remain confident in the bank’s long-term performance outlook.
With loan and deposit momentum still strong, the bank expects further income growth ahead. Emirates NBD plans to continue strengthening its operations despite tax pressures. Investors remain optimistic about future performance.
