Emirates Bank Group posts 41.6 per cent growth in profits for the first half of 2004

The earnings per share (EPS) of the bank has grown to Dh 0.7 from Dh 0.5 for the same period in 2003.

During this period, the group has managed to grow assets substantially, i.e., 8% since 2003, and over 22% since the first half of 2003. The growth in revenues has reached over 33%, as both the interest income and the non-interest income improved significantly. Non-interest income growth has surpassed interest income growth and non-interest income to cost ratio (excluding property related income) has reached 93%.
The strong performance of the group in this period has been driven by the strategy of the group around relentless focus on the customer and continued efficiency improvement.

Each business unit of the group has launched a set of strategic initiatives that helped the bank to focus on the needs of the customers and serve them in innovative ways. For example, the retail banking unit has redefined its customer segments around key profitability measures and redeployed its branches in the light of this new strategy. The corporate banking unit has launched transaction banking services for corporate and institutional customers. As a result, each business unit has achieved double digit growth in their respective markets.

To support the strong business growth and ensure that the costs are kept under control, the group has leveraged its leadership in technology. Investments in technology have enabled to simultaneously improve efficiency and customer service. The bank continued to successfully shift the transactions to lower cost channels (such as ATMs, Internet and Call Centre) by leveraging the technology platform and pricing strategies. Technology has also enabled to radically streamline the operations, by minimizing the operational work done at the branches and centralizing the operational load at the Back Office Centre.

While the business units continue to deliver on their targets, Emirates bank continues to work on two key initiatives that are a fundamental part of the longer term strategy of the group, which are establishment of Emirates Islamic Bank via the conversion of Middle East bank license, and launching of the operations in Saudi Arabia. Islamic banking segment is the largest growing segment in UAE, and by conversion of the Middle East Bank license, Emirates Bank Group will quickly tap into this segment with existing customers and established branches. Saudi Arabia banking sector is the largest in GCC, and the launch of operations in KSA offers significant growth opportunity for Emirates Bank outside of its home market.