UAE Equity Research - Emirates NBD (ENBD) 3Q24 - First Look Note
The Bank revised FY2024 loan growth guidance to low double-digit driven by the robust growth witnessed so far, positive economic outlook and announcements on infrastructure investments.
ENBD’s NIMs improved 13 bps QOQ to 3.65% in 2Q24 attributable to asset repricing and stabilization of cost of funds in DenizBank. The Bank expects its NIMs to stay between 3.6-3.8% in 2024.
ENBD’s NIMs declined 44 bps YOY and 37 bps QOQ to 3.5% in 1Q24 attributable to higher funding cost and competitive loan pricing. The Bank expects its NIMs to stay between 3.6-3.8% in 2024.
Robust loan & deposit expansion with strong growth in non-core business drove profitability
Emirates NBD’s (ENBD/the Bank) net profit grew significantly from AED 3,500 Mn in 2Q22 to AED 6,226 Mn in 2Q23, higher than our estimate of AED 5,511 Mn.
Favorable loan & deposit mix and higher interest boosted profitability
Emirates NBD’s (ENBD/the Bank) net profit almost doubled from AED 2,012 Mn in 4Q21 to AED 3,929 Mn in 4Q22, slightly above our estimate of AED 3,818 Mn.
