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Emirates NBD hits record Dh10 billion profits in 2018 Emirates NBD, Dubai’s largest bank, on Wednesday said its net profit jumped 20 per cent in 2018 to reach record Dh10-billion mark on the back of higher interest income and reduced provisions. The bank also achieved a milestone of assets reaching half a trillion-dirham mark for the first time in its history. “2018 marked another successful year for Emirates NBD with strong income growth leading to a record high net profit. As the official banking partner for Expo 2020 Dubai, we are focused on ensuring that banking services at the exhibition are at the forefront of innovation… In light of the solid performance by the Bank, we are proposing a cash dividend at 40 fils per share,” said Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD. “We continued to expand the Bank’s international presence in 2018 by growing our branch network in Saudi Arabia and Egypt. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves,” said Hesham Abdulla Al Qassim, vice-chairman and managing director, Emirates NBD. Strong annual profits boosted bank’s shares on Dubai Financial Market by 2.8 per cent to Dh9.25 by noon time. Shayne Nelson, group CEO, Emirates NBD, said net profit increase was underpinned by higher income and a lower cost of risk. “Margins widened 35 bps in 2018 as rate rises flowed through to the loan book which more than offset a rise in funding costs. The Group’s balance sheet remains healthy with a further strengthening in capital coupled with strong liquidity and stable credit quality. We made exciting progress in advancing our digital agenda and are pleased to be named The Innovator in the Middle East at the Global Finance 2018 Innovators Awards,” said Nelson. Total income for 2018 amounted to Dh17.4 billion; an increase of 13 per cent when compared with Dh15.455 billion achieved in 2017. Net interest income grew 19 per cent to Dh12.88 billion in 2018 due to loan growth coupled with an improvement in margins. The net interest margin increased in 2018 helped by rate rises, the bank said. Its costs also increased 16 per cent year-on-year to Dh5.62 billion due to higher staff, international branch expansion, Value-Added Tax, advertising and Expo 2020 sponsorship. The net impairment charges fell 22 per cent to Dh1.748 billion, helped by recoveries from legacy loans. This net provision includes Dh1.631 billion of write-backs and recoveries. The bank said its revised upward UAE’s growth outlook due to increased oil production. “Oil production in the UAE rose by more than expected in H2 2018, and as a result, we have revised our 2018 estimate for real GDP growth to 2.4 per cent from 2.2 per cent previously. For 2019, we expect economic activity to be underpinned by higher oil production as well as increased government spending. We expect headline GDP growth in the UAE to reach 3.1 per cent in 2019,” it said on Wednesday. Source:https://www.khaleejtimes.com/business/banking-finance/emirates-nbd-net-profit-surges-20-to-dh10-billion-in-2018 Bank of Sharjah shares resume trading on ADX Trading in shares of Bank of Sharjah resumed after the bank notified the Abu Dhabi Securities Exchange about its financial results for 2018. The bourse had earlier suspended trading in the bank's shares for not submitting its results. "As Bank of Sharjah didn't submit their financial statement, hence it is decided to temporarily suspend trading on the company's shares starting January 27, 2019 until further notice," the bourse earlier said in a statement posted on its website. After the resumption, Bank of Sharjah's shares were trading at Dh0.999 per share on Abu Dhabi Securities Exchange. Bank of Sharjah's 9-month 2018 profits grew 13 per cent to Dh301 million, surpassing its 2017's full-year profit of Dh265 million. Varouj Nerguizian, general manager, Bank of Sharjah, said during a recent interview with Khaleej Times that the lender is not engaged in any merger talks with any banks in the UAE but it is open for mergers. "We are not talking to any bank for merger. There is no talk with Invest Bank as well. But we are ready for [merger] opportunities. It is not a matter if we want to merge or don't want to. There are situations that force opportunities upon you and you move to take advantage of that. Consolidation started in Abu Dhabi, then moved to Dubai and now it will move to Sharjah and other emirates," said Nerguizian. Souce:https://www.khaleejtimes.com/business/banking-finance/Bank-of-Sharjah-shares-resume-trading-on-ADX UAE Central Bank announces M1 increases by 1.3% The UAE Central Bank has announced that the Money Supply aggregate M1 increased by 1.3 per cent, from Dh479.5 billion at the end of November 2018 to Dh485.6 billion at the end of December 2018. The Money Supply aggregate M2 increased by 1.6 per cent, from Dh1288.4 billion at the end of November 2018 to Dh1308.4 billion at the end of December 2018. Consequently, the Money Supply aggregate M3 also increased by 0.6 per cent, from Dh1593.5 billion at the end of November 2018 to Dh1602.3 billion at the end of December 2018. The increase in M1 was mainly due to an increase of Dh6.2 billion in Monetary Deposits, overshadowing a Dh0.1 billion reduction in Currency in Circulation outside Banks. The rise in M2 was brought about by the increase in M1 and a Dh13.9 billion increase in Quasi-Monetary Deposits. M3 mainly rose due to increased M1 and M2, overriding a Dh11.2 billion decrease in Government Deposits. Gross bank assets, including bankers' acceptances, increased by 0.8 per cent, rising from Dh2854.3 billion at the end of November 2018 to Dh2878 billion at the end of December 2018. Gross credit also increased by 0.2 per cent from Dh1653.5 billion at the end of November 2018 to Dh1656.6 billion at the end of December 2018. During December 2018, total bank deposits increased by Dh16.8 billion, due to Dh6.7 billion and Dh10.1 billion increases in Resident Deposits and Non-Resident Deposits, respectively. Source:https://www.khaleejtimes.com/business/banking-finance/uae-central-bank-announces-m1-increases-by-13

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