Dubai lender Emirates NBD posts 17.2% rise in fourth-quarter profit

Full-year profit meanwhile rose 15 percent from 2016 to Dh8.35 billion, which Emirates NBD attributed to “asset growth, a control on expenses and reduced provisions.” (Reuters)
Updated 16 January 2018
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Dubai lender Emirates NBD posts 17.2% rise in fourth-quarter profit

DUBAI: Emirates NBD, Dubai’s largest lender, posted a 17.2 percent rise in fourth-quarter net profit on Tuesday.
The bank, the first major lender from the UAE to report its earnings during the quarter, made a net profit of Dh2.18 billion in the three months to December 31, a statement from the bank said, compared with Dh1.86 billion in the corresponding period of 2016.
SICO Bahrain forecast the bank to post a net profit of Dh2.23 billion for the quarter, while EFG Hermes expected a profit of Dh1.98 billion.
Full-year profit meanwhile rose 15 percent from 2016 to Dh8.35 billion, which the bank attributed to “asset growth, a control on expenses and reduced provisions.”
Total income for 2017 amounted to Dh15.455 billion, 5 percent higher than the Dh14.748 billion figure reported in 2016.
“2017 marked a successful year for Emirates NBD as we achieved a record annual net profit … As a leading bank in the region and a front-runner in digital banking innovation with a strong balance sheet, we are well placed to take advantage of growth opportunities in our preferred markets. In light of the solid performance by the bank, we are proposing a cash dividend at 40 fils per share,” Sheikh Ahmed Bin Saeed Al Maktoum, the Chairman of Emirates NBD, said in a statement.
Emirate NBD’s group-wide assets rose 5 percent to Dh470.4 billion in 2017; its aggregate loan portfolio also increased a similar percentage to Dh304.1 billion, ditto with total deposits which went up to Dh326.5 billion for the whole year.


MSCI considers lifting China weighting in benchmark index

Updated 12 min 45 sec ago
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MSCI considers lifting China weighting in benchmark index

  • The proposal signals MSCI may increase China’s profile in such indices at a faster-than-expected pace
  • MSCI cited the ‘successful implementation’ of Chinese shares into its indices as a factor in considering a greater weighting

SHANGHAI: Global equities index compiler MSCI has said it is considering quadrupling the weighting of Chinese large-cap shares in its benchmark Emerging Markets Index over the next two years as well as adding mid-caps and companies listed on the tech-heavy ChiNext board.
The proposal signals MSCI may increase China’s profile in such indices at a faster-than-expected pace despite Chinese markets being among the world’s worst-performing this year.
For the first time, US-based MSCI added more than 200 Chinese big-cap companies to its Emerging Markets Index earlier this year.
Following a second round of additions in August, five percent of the market capitalization of Chinese big-cap firms is now reflected in the index.
But MSCI said in a statement on Tuesday that it was looking at raising that to 20 percent.
The move would take place by August 2020 and is contingent on receiving investor feedback before a final decision is made next year.
The increase would include, for the first time, more than a dozen companies from the ChiNext board, a NASDAQ-style board at the Shenzhen Stock Exchange in southern China.
MSCI may go further in 2020 by introducing mid-cap shares.
If all the changes are made, Chinese yuan-dominated shares would make up 3.36 percent of MSCI’s Emerging Markets index, up from the current 0.71 percent.
MSCI cited the “successful implementation” of Chinese shares into its indices as a factor in considering a greater weighting.
MSCI’s Emerging Markets Index and other indices are used by institutional investors to determine which shares around the world to add to their portfolios, and inclusion is expected to eventually lead to billions of dollars of new foreign investment in Chinese shares.
China’s benchmark Shanghai stock index, however, has tumbled around 15 percent this year amid factors including the Sino-US trade war.
The MSCI announcement buoyed shares on Wednesday, with the Shanghai index rising more than one percent.