Emirates Bank Group profit increase upto AED 1,732 million

Emirates Bank Group Chairman, His Excellency Ahmed Humaid Al Tayer said :

"2005 has been another successful year for Emirates Bank Group. The growth in revenues and profits was broad based with strong performance in our existing businesses as well as delivery on new initiatives. The Group, as a result, is today much stronger with an increased diversification of its revenue base."

Net interest income of AED 1,172 million showed a 43% increase over 2004 levels reflecting the growth in the loan and investment book. Non-interest income of AED 1,059 million shows a 57% increase during 2005 and reflects the Board's strategy of diversifying its non-interest revenue streams across the Group.

Earnings per share increased to AED 2.41 from AED 1.35 for 2004.

Total assets of the Group were AED 59,392 million a 54% increase from 2004 level of AED 38.468 million. Loans and receivables increased by 40% to AED 38,567 million in 2005 from AED 27,412 million in 2004. Despite the significant growth in the loan book, non-performing loans remained largely unchanged at AED 574 million reflecting continued strong credit control.

Islamic financing and investment products balances grew to AED 2.441 million at 2005 from AED 421 million in 2004. Islamic customer deposits also showed strong growth to AED 3.593 million in 2005 from AED 1,233 million in 2005.

Customer deposits were AED 29,464 million, an increase of 51% from the 2004 level of AED 19,424 million.

Total equity holders' funds increased by 33% during 2005 to AED 7,749 million from AED 5,816 million at 2004 reflecting the policy of protecting and strengthening equity holders' value.

Return on average equity was 25.5% for 2005 compared to 18.0% for 2004 and return on average assets increased to 3.5% for 2005 compared to 2.7% for 2004.

The Directors' have recommended a cash dividend of 25% to be paid out of the 2005 profit and a bonus shares of 30% (3 shares for every 10 shares held).

Commenting on the outlook for 2006, His Excellency Ahmed Humaid Al Tayer said : "The economy will continue to perform strongly and the business environment will remain positive. However, it will be prudent to expect moderation in some of the extraordinary returns witnessed in 2005. The challenge for Emirates Bank Group is to sustain our growth momentum from a higher revenue base so that we can continue to strengthen our foundation. Our strong capital resources put us in a better position to make strategic investments that will help deliver a higher level of service and value for our customers and shareholders in the coming years".