Emirates NBD reports net profits of Dhs1,196m for the first quarter 2008

The core profits during the first three months of 2008 grew by 37%.

Total assets reached Dhs277.5bn on 31 March 2008 from Dhs253.8bn on 31 December 2007, an increase of 9.3%. Loans and advances grew 5.4% over the same time period to reach Dhs175bn, driven by robust growth in both wholesale and retail segments. Customer deposits grew 8% to Dhs150bn in first three months of 2008.

Commenting on the results, The Emirates NBD Chairman, H.E. Ahmed Humaid Al Tayer, said: "Emirates NBD continues to deliver strong performance across all businesses. This is the first quarterly result for the Bank after the completion of Merger on the 16th October 2007. The Bank continues to lead in the region through product innovation and offering superior customer service experience. The results confirm the merits of our growth strategies emphasizing expansion and service delivery."

Total income in first three months of 2008 grew to Dhs2,198m from Dhs1,475m for the same period last year, reflecting a strong growth of 49%. Total funded income grew by 57% in the first three months of 2008 to Dhs 1,381 m. Earnings per share increased 35% relative to the same period last year to reach Dhs 0.27, while return on tangible equity reached 25.5% for the first three months of 2008.

Costs in first three months of 2008 grew 48% over same period in 2007 to Dhs 855 m with continued investments in distribution, infrastructure, governance capabilities and integration activities. Cost to income ratio stood at 38.9%. During the period the branch and ATM network increased to 113 branches and 451 ATMs.

Commenting on the Group's performance, Emirates NBD Chief Executive Officer Mr. Rick Pudner said:

"Our results evidence the dynamic approach we take to manage expense growth, prudent investments to reflect income growth and the performance of the business. We continue to accelerate investment in the business to take advantage of growth opportunities available in the markets building a platform for sustainable future income growth. First quarter of 2008 saw continued revenue growth in most of the businesses with increasing earning power from our core businesses."

Emirates Islamic Bank, a subsidiary of Emirates Bank, continues its strong growth and market share gain. In first three months of 2008, Islamic Financing & Investments grew 21% to Dhs17.6bn from Dhs14.5bn on 31 December 2007. Islamic customer deposits increased 41% to reach Dhs20.4bn.

Business initiatives and investments

Emirates NBD was successful in arranging and lead managing many benchmark deals in UAE and the region. Major deals included:
•Emirates NBD acted as sole underwriter and lead arranger for raising $2.6bn for Meydan LLC.
•Mudarba facility for Limitless LLC for $1.2bn.
•Structured debt financing for Daman for Dhs500m.
•Syndicated term loan facility to Bank of Moscow for $150m.
•The bank launched syndication of $400m for Axiom
•Emirates NBD is acting as mandated lead arranger for $2.22bn and GBP796m for Borse Dubai
•The Bank joined EMAL transaction as sub underwriter for $225m.

The Bank continued to grow its mortgage and credit card business during the first quarter of 2008.
Emirates NBD announced the introduction of 3 new online payment services across the UAE to settle utility bills for Abu Dhabi Distribution Company (ADDC), Al Ain Distribution Company (AADC) and Empower. Emirates NBD also partnered with Emirates Identity Authority (EIDA) to launch its new multi purpose ID card service. The bank also tied up with Box Office, an authoritative address for the entertainment industry offering UAE residents the ultimate convenience to purchase tickets for the events via its websites and avail of VIP fast track privileges onsite.

Investment Banking business continues to grow through NBD Investment Bank a wholly owned subsidiary established in DIFC. NBD SANA Capital was granted a license under Article 48 of the Regulatory Law 2004, together with a license granted by the DFSA for NBD SANA Capital Limited to operate as an authorised category 2 company. SANA Capital Private Equity Funds was successfully launched during March 2008.

Awards

The Group received a number of awards during the first quarter of 2008. H.H. Sheikh Mohamed Bin Rashed Al Maktoum honored Emirates NBD's role in boosting investments and contribution to growth of UAE economy.

Emirates NBD has been named as Best Emerging Market Bank and Best Foreign Exchange Bank in the UAE for the year 2008 by Global Finance Magazine.
Superbrands council honored Emirates NBD with three Superbrands awards for Emirates Bank brand, National Bank of Dubai brand and mebank brand at the Superbrands Tribute Event held recently.

Integration update

The integration of Emirates NBD is progressing as contribution of the integrated businesses towards the overall performance is in line with expectations. The bank has pursued various process redesigning and restructuring activities across the Group to improve efficiency.

The organisation structure has been formalized for the combined entity and the new management team that has been appointed is functional in leading Emirates NBD to new heights of success. The co-location of teams from both banks has been done in majority of the cases. On the business side, Emirates NBD has started to leverage the extended product range across combined customer base. The ATM and CDM networks of both the banks have already been integrated.

Rick Pudner, CEO of Emirates NBD, commented, "The integration of Emirates NBD is progressing well. We are fully committed to our proven strategy and have established a firm foundation to deliver strong growth in 2008 and beyond."