Emirates Bank Group announces its 2006 half year results

The First Half in 2006 also saw Earnings per share increase to AED 0.42 from AED 0.31 a year ago.

Total assets of the Group reached AED 72.4 billion at 30 June 2006, an increase of AED 13.0 billion from the 31 December 2005 level of AED 59.3 billion. Loans and advances increased 20% to AED 46.2 billion at 30 June 2006 from AED 38.5 billion at 31 December 2005 reflecting robust growth in both corporate and retail segments. Customer deposits increased to AED 31.6 billion at June end from AED 29.4 billion at 31 December 2005.

Emirates Islamic Bank continues to deliver strong growth in earnings. Islamic financing and investments increased by 103% to AED 4.3 billion at 30 June 2006 from AED 2.1 billion at 31 December 2005. Islamic customer deposits also increased to AED 6.2 billion from their 31 December 2005 level of AED 3.5 billion.

Commenting on the outlook, Emirates Bank Group Chairman, His Excellency Ahmed Humaid Al Tayer, said,

'The underlying fundamentals of the economy are strong and UAE's growing role in international business and economic environment presents excellent opportunities for both financial and corporate sectors in the country. Emirates Bank is responding through continued investments in our capabilities and people. The Group's performance in the First Half of 2006 reflects that our strategy and investments are delivering value.'

Emirates Bank's Chief Executive Officer Rick Pudner said, 'The First Half of 2006 saw the Group deliver a strong performance in a very competitive business environment. Business growth in the UAE remains strong and we continue to expand our retail, corporate and treasury activities to meet client needs. During this period, we opened 6 new branches and installed an additional 18 ATMs bringing our branch network to 54 branches and 148 ATMs at 30 June 2006.'

Wholesale banking business posted a significant growth over the same period last year. Commercial income increased by 70% and net profit increased by 73%. The Structured Finance and Syndications Division was created earlier this year to meet the needs of our wholesale banking customers through structuring, lead managing and participating in a number of large syndications.

The newly introduced 'smartBUSINESS' - a cash management system for corporate clients - has been welcomed by the market and recorded rapid growth in customer numbers, transaction volumes and values. A new factoring services facility became fully operational with a non-recourse service offered to corporate customers.

The Group continues to use international capital markets to secure medium term borrowings to fund its asset growth. In June 2006, the Group launched a successful Euro 500 million FRN issue under its EMTN program with an effective yield of Libor plus 34 basis points. In addition the Group expanded its sources for such funding through private placements in a wide range of new markets in a range of currencies. Treasury experienced a significant growth in business volumes during 2006 and continues to provide tailored structured solutions for customers with a range of interest rate and foreign exchange structured products.

A significant development in 2006 was the launch of Group's Long Term Incentive Plan (LTIP) for key employees. Mr. Jamal Bin Ghalaita, General Manager Corporate Centre said, 'Employees are our most valuable asset. The launch of LTIP is another step in our commitment to provide competitive compensation positioned to attract, retain and motivate talented individuals who are fundamental to our ability to deliver on the expectations of our customers & shareholders.'