Emirates NBD

Emirates NBD performed strongly during 2007. The balance sheet size of Emirates NBD reached AED253.8bn at the end of 2007, a strong growth of 53% in Emirates Bank International (EBI) and National Bank of Dubai’s (NBD) combined balance sheet size at the end of 2006. The growth of the bank has been robust during the 3-year period 2004-07 coinciding with the economic boom in the country. During this period, total assets of the bank have grown at an impressive CAGR of around 50%.

The growth in asset base in 2007 came on the back of significant improvement in the deposit base. Customer deposits of Emirates NBD Deposits reached AED124.1bn at the end of 2007, 44% growth over 2006. Out of these, AED60bn worth of deposits were held with EBI and the rest AED64.1bn was with NBD at end of 2007.

The strong growth observed in deposits has been reflected in loan book as well. During 2007, total loans reached AED166.4bn, a growth of 51% in EBI and NBD’s combined loan book size at the end of 2006. The strong growth in economy during the period 2004- 07 has contributed significantly to the CAGR of 55.7% in loan book. At the end of 2007, gross loans and advances as a percentage of customer deposits stood at more than 120%, up from around 115% in 2006. Loans to corporate sector comprise around 85% of total loan and retail sector contribute around 12% with rest from treasury exposures.

The total income of Emirates NBD reached AED7.1bn on a pro forma basis in 2007, a jump around 50% from the combined income of EBI and NBD in 2006. Net interest income reached AED4.1bn in 2007 i.e. up 52% from AED2.7bn in the previous year. Interest income for the year was AED11.5bn where as interest expense was AED7.4bn. The interest margin of the combined entity has indicated a declining trend; however it has stabilized in 2007.