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The latest in a stream of earnings: Our friends at Mashreq, First Abu Dhabi Bank, and United Arab Bank reported solid 2Q 2024 earnings. Meanwhile, Dubai Taxi, Emirates Driving, and NMDC posted their results.
Fast facts: The net income of 10 UAE-listed banks increased by 12.3% y-o-y to AED 35.6 bn in 1H 2024, with Emirates NBD comprising the lion’s share of net income with a bottom line of AED 13.78 bn, according to Al Bayan data. DFM-listed lenders saw profitability rise by 12.9% y-o-y to AED 18.85 bn during the period, while banks listed on the Abu Dhabi bourse logged a slightly lower 12% y-o-y climb in net income to AED 16.8 bn.
MASHREQ-
Our friends at Mashreq posted AED 2.01 bn in net income after tax, up 4% y-o-y in 2Q 2024, driven by an increase in net interest income, which is the difference between returns on loans and payouts on deposits, according to the bank’s earnings report (pdf). The bank’s net interest income and income from Islamic financing increased 11% y-o-y to AED 2.08 bn, while its total operating income rose 15% y-o-y to AED 2.98 bn.
On a six-month basis, Mashreq saw its net income jump 14% y-oy to AED 4.05 bn. The lender logged AED 6.13 bn in total operating income for 1H 2024, marking a 20% y-o-y increase compared to 1H 2023. Net interest income rose 17% y-o-y during the six-month period to AED 4.22 bn on the back of a “substantial expansion of the balance sheet supported by healthy client margins.”
The bank’s total assets rose 20% y-o-y to AED 253.47 bn, with loans and advances growing 22% y-o-y to a cumulative AED 162.97 bn. Meanwhile, customer deposits climbed 21% y-o-y to AED 153.96 bn.
What they said: “Our results demonstrate that, despite the challenging global environment, we are making excellent progress on our strategic priorities and achieving industry-leading financial performance. This progress was primarily driven by sustained, strong net interest income, while our high customer activity across the business led to a significant uplift in non-interest income, resulting in a 2Q return on equity of 27.6%,” our friend Group CEO Ahmed Abdelaal said.
FIRST ABU DHABI BANK-
First Abu Dhabi Bank reported a bottom line after tax of AED 4.27 bn in 2Q 2024, up 1% y-o-y and 3% from the previous quarter, according to the bank’s financials (pdf). The UAE’s largest lender attributed the performance to a “strong liquidity profile and solid asset quality,” as well as growing net interest and non-interest income, according to an earnings release (pdf). Revenues rose 14% y-o-y to AED 7.76 bn during 2Q, with total assets reaching AED 1.2 tn as of 1H 2024
On a six-month basis, FAB saw its net income rise 3% y-o-y to a record AED 8.41 bn in 1H 2024. Operating income jumped 16% y-o-y to AED 15.73 bn, driven by an increase in the bank’s net interest income, including a 20 bps y-o-y improvement in net interest margins, and solid business volumes.
A boost in net interest income + loans and deposits: Net interest income grew 11% y-o-y to AED 9.76 bn, while non-interest income increased 26% y-o-y to AED 5.96 bn, and made up 38% of total revenue on the back of an increase in fees on loans, trade, and credit cards. Meanwhile, loans, advances, and Islamic finance were up 6% y-o-y to AED 513 bn, while deposits grew 1% y-o-y to AED 766 bn.
Looking ahead: “We remain on track to meet our 2024 and medium-term guidance, and to deliver sustainable shareholder returns,” CEO Hana Al Rostamani said.
NATIONAL BANK OF FUJAIRAH-
The National Bank of Fujairah (NBF) saw its net income after tax grow 5.5% y-o-y to AED 190.1 mn in 2Q 2024 on the back of cost management, improvement in impairment positions, and a high interest rate environment, it said in its earnings release (pdf). NBF booked AED 590.34 mn in operating income, marking a 5.6% y-o-y growth. Net interest income saw a 3.1% y-o-y increase during the quarter, reaching AED 434 mn, according to its financial statements (pdf)..
In 1H 2024, the lender’s net income after tax increased 33% y-o-y to AED 441.2 mn, while operating income over the six-month period rose 8.2% y-o-y to AED 1.2 bn.
UNITED ARAB BANK-
The United Arab Bank (UAB) saw its net income after tax grow 7% y-o-y to AED 70 mn in 2Q 2024, according to its financials (pdf). Net interest income in 2Q rose 10% y-o-y to AED 111 mn, while total income fell 9% y-o-y to AED 137 mn.
In 1H 2024, the bank posted AED 139 mn in net income after tax, up 15% y-o-y, and AED 243 mn net interest income, up 26% y-o-y. Total income came in at AED 300 mn, posting a 10% y-o-y jump. Meanwhile, UAB’s total assets jumped 37% y-o-y to AED 19.8 bn in 1H 2024, attributable to growth in the lender’s lending book and a growth in customer deposits.
COMMERCIAL BANK INTERNATIONAL-
Commercial Bank International saw its net income inch up c. 1% y-o-y to AED 44.9 mn in 2Q 2024, according to its financials (pdf). Net operating income grew 6% y-o-y to AED 129.7 mn.
In 1H 2024, the bank posted a 3% y-o-y increase in net income to AED 81.5 mn, while operating income fell 7% y-o-y to AED 250.1 mn.
NATIONAL MARINE DREDGING COMPANY-
The National Marine Dredging Company (NMDC) saw its net income climb 42% y-o-y to AED 820.2 mn in 2Q 2024, while revenues increased 91% y-o-y during the quarter to AED 6.78 bn, according to the company’s financials (pdf).
On a six-month basis, NMDC’s net income increased 66% y-o-y in 1H 2024 to AED 1.46 bn, driven by cost optimization measures and technological advancements. Its top line rose 79% y-o-y to AED 12.13 bn, as the company was awarded “several significant contracts” during the period.
NMDC is eyeing an over AED 75 bn project pipeline: NMDC is currently participating in tenders for projects worth AED 75 bn within and outside the Mena region, the company’s CEO Yasser Zaghloul told Asharq Business (watch, runtime, 8:10). NMDC has secured its first project in Europe, and plans to expand its footprint further in the continent and other active global markets, Zaghloul said, without disclosing further details.
DUBAI TAXI-
Dubai Taxi recorded a 14% y-o-y drop in net income to AED 79.4 mn in 2Q 2024, according to its financials (pdf). Revenues grew 12% y-o-y to AED 531.2.
On a six-month basis, the company saw its net income inch up 1% y-o-y to AED 187 mn, while revenues climbed 12% y-o-y to AED 939 mn. The flat income growth was attributed to the impact of corporate tax and finance costs, DTC said in its earnings release (pdf).
The firm approved a dividend payout of AED 159.3 mn, equivalent to 6.37 fils per share for its 1H 2024 earnings.
Looking ahead: “Our outlook is positive, supported by Dubai’s continued success as a leading business and leisure destination, with strong macroeconomic tailwinds enabling population growth and urban expansion, which we see driving long-term, sustainable demand growth for our services,” CEO Mansoor Rahma Alfalasi said.
EASYLEASE-
ADX-listed mobility solutions outfit and International Holding Company (IHC) subsidiary EasyLease’s bottom line halved to AED 5.2 mn in 2Q 2024, according to its financial statements (pdf). The company’s top line grew 34% to AED 92.4 mn during the same period. On a six-month basis, Easy Lease’s bottom line rose 11% y-o-y to AED 18.2 mn in 1H 2024, while revenues grew 36% y-o-y to AED 189.7 mn.
EMIRATES DRIVING-
Emirates Driving’s net income after tax in 2Q 2024 fell 9.5% y-o-y to AED 55.3 mn, according to its financials (pdf). Revenues inched up 6.2% y-o-y to AED 85.6 mn.
In 1H 2024, net income after tax fell 4% y-o-y to AED 119.3 mn, according to the statements.Its revenues grew 3% y-o-y to AED 175.8 mn.
