We have our first trickle of 2Q earnings, including of several major banks — which have been widely expected to report lower earnings on the back of a surge in interest payments on deposits and the corporate tax.

EMIRATES NBD-

Emirates NBD beat expectations with a 13.2% y-o-y increase in its net income to AED 7.06 bn in 2Q 2024, topping AED 7 bn for the first time ever, according to its financial statements (pdf). The surge is attributed to “the strongest ever results from Emirates Islamic, improving margins in DenizBank and sizable recoveries bolstered by a buoyant economy,” according to a separate earnings release (pdf). Revenues remained relatively flat in 2Q at AED 10.71 bn, down 1% y-o-y.

On a six months basis, the lender’s net income inched up 12% y-o-y to AED 13.78 bn in 1H 2024, while revenues stood at AED 21.38 bn, up 0.4% y-o-y.

The breakdown: The bank achieved its highest half-yearly funded and non-funded income, with an asset growth of 41% y-o-y to USD 25 bn and a healthy deposit mix growing AED 39 bn in 1H 2024. The profitability of the corporate and institutional banking segment grew 64%, with corporate lending up 7% y-o-y. Global markets and treasury generated AED 1.3 bn in income during the six month period, despite a “general increase in cost of wholesale funding and term deposits due to higher interest rates.”

The bank’s Islamic finance arm Emirates Islamic saw its bottom line grow 39.5% y-o-y to AED 852.3 mn in 2Q 2024, while its operating income also rose 12% y-o-y to AED 1.35 bn, according to its financial statements (pdf). In 1H 2024, Emirates Islamic’s bottom line climbed 37% y-o-y to a record AED 1.66 bn, driven by “superior levels” in both funded and non-funded income, according to an earnings release (pdf). Revenue rose 15% y-o-y to AED 2.7 mn in 1H 2024.

Emirates Islamic saw its total assets surpass the AED 100 bn mark at AED 102 bn, up 16% y-o-y, while deposits grew 14% y-o-y to AED 70 bn. Current and savings account balances accounted for 73% of total deposits, the bank said.

ADCB-

ADCB had a good quarter: ADX-listed Abu Dhabi Commercial Bank (ADCB)’s net income rose 19.9% y-o-y in 2Q 2024 to reach AED 2.32 bn, according to the lender's financial statements (pdf). ADCB’s operating income stood at 4.7 bn during the quarter, up 16% y-o-y. The bank also saw assets climb above AED 600 bn, according to its earnings release (pdf).

On a six month basis, ADCB saw its net income reach AED 4.5 bn in 1H 2024, up 16.9% y-o-y, according to their financials. The bank’s operating income reached AED 9.3 bn during the period, up 16.7% y-o-y, with the bank recording double-digit year-on-year growth in both net interest income and noninterest income.

AJMAN BANK-

Ajman Bank’s bottom line doubled to AED 108.1 mn in 2Q 2024, up 103% y-o-y, according to its financial statements (pdf). The lender’s net operating income stood at 233 mn in 2Q 2024, up 23% y-o-y.

In 1H 2024: Ajman Bank’s net income stood at AED 215.6 mn in 1H 2024, up 110% y-o-y. The bank’s net operating income rose 1.6% y-o-y to 428.1 mn during the six-month period.

SANAD-

Mubadala-owned Sanad logged AED 2.3 bn in revenues in 1H 2024, driven by “significant contributions from its core maintenance, repair, and overhaul and leasing divisions,” Wam reports. The global aerospace engineering and leasing solutions company increased its global orderbook to AED 33 bn in 1H 2024, representing an AED 4 bn addition to its contracted business.

Sanad expects to generate revenues of AED 4.5 bn in 2024, up 28% y-o-y, and double the revenue of 2022.

SHARJAH ISLAMIC BANK-

Sharjah Islamic Bank (SIB)’s net income rose 17% y-o-y to AED 306.5 mn in 2Q 2024, according to its financial statements (pdf). The bank’s operating bottom line also rose 9% y-o-y to AED 524.3 mn in 2Q 2024, driven by improved net fees, commissions, and other income.

Breakdown: Net income from financing and investment products totaled AED 362.5 mn during the quarter, up a marginal 4% y-o-y.

On a six-month basis, SIB’s net income rose 14% y-o-y to AED 566.2 bn in 1H 2024, while its operating bottom line grew 7% y-o-y to AED 1.03 bn.

PALM SPORTS-

International Holding Company sports management subsidiary Palms Sports saw its net income rise 6% y-o-y to AED 22.7 mn in 2Q 2024, according to the company’s financial statements (pdf). The company’s revenues saw a 212% y-o-y uptick during the quarter to reach AED 253.6 mn.

In 1H 2024, Palms Sports saw its net income after tax jump 28% y-o-y to reach AED 38.3 mn. Palms Sports’ total revenues increased by 210% y-o-y, reaching AED 512 mn, driven by “the strategic acquisition of Securiguard Middle East and the successful implementation of new projects,” according to the company’s earnings release (pdf).

Looking ahead: Palm Sports will be pursuing “ambitious plans for regional expansion, particularly in Egypt,” the earnings release said.

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