Emirates NBD’s profit surged 130% to a record AED12.3 billion ($3.35 billion) in the first half of 2023 on strong current and savings accounts growth coupled with a healthy increase in lending.
Q2-23 is also a record quarter with income growing to AED10.8 billion and profit rising to AED6.2 billion, reflecting the buoyant regional economy, the bank said.
The exceptional profitability reflects higher margins, growing non-funded income and a lower cost of risk on significant recoveries, it said.
Emirates NBD’s market-leading deposit franchise added AED53 billion of deposits including AED37 billion of low-cost current and savings accounts. Success in record retail lending growth and corporate lending closing key deals across the region drove 5% loan growth, with guidance revised positively upwards.
All business units delivered higher income and profit. The group’s investment in technology and AI enabled the launch of new digital products and services which is driving business growth.
The rock-solid balance sheet makes Emirates NBD a regional powerhouse leading to Emirates NBD being recognised as ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence Awards 2023, the bank said.
Key Highlights – First Half 2023
• 130% profit growth on higher margins, improved deposit & loan mix and substantial recoveries
• Total income up 50% to AED21.3 billion on excellent deposit mix with higher interest rates feeding through to margins and strong growth across all business segments and products;
• Deposit mix is a key strength. Deposits grew AED53 billion in H1-23 including AED37 billion of low-cost current and savings accounts;
• Loans up an impressive 5% in H1-23 with record retail lending and corporate closing key deals across the region leading to guidance revised positively upwards;
• Net interest margin rose significantly by 110 basis points y-o-y to 3.96%;
• Impairment allowances substantially down 50% y-o-y as credit quality improved, reflecting the Group’s prudent approach to credit provisions;
• Balance Sheet surpasses AED800 billion milestone for the first time ever;
• Earnings per share up significantly by 138% to 190 fils, underlying up 92% to 211 fils
• Awarded ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence Awards 2023.
Emirates NBD’s investment in technology, AI and Advanced Analytics is driving new customer focused services & products, and propelling future business growth, the bank said.
Also, looking to the future as the UAE hosts COP28, Emirates NBD is delivering ESG solutions to customers as their net-zero ambitions and sustainability goals drive economic activity. These initiatives include:
• Carbon Trading introduced as Emirates NBD becomes first UAE bank to empower customers to manage carbon emissions offsetting, helping align with UAE’s Net Zero action plan;
• Innovative green financing solutions provided to our regional and global clients;
• 75% of cards issued now eco-friendly bio-cards, reducing plastic consumption
• ESG commitment reinforced with four further branches in the UAE and KSA achieving LEED Platinum and LEED Gold certifications;
• UAE Gender Balance Pledge signed further solidifying group’s commitment to gender equality and diversity.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, said: “Emirates NBD’s profit hit a record high of AED12.3 billion for the first half of 2023 reflecting the group’s growing regional presence and visionary investment in technology and AI which is driving new product delivery and propelling growth.”
“Emirates NBD is proudly celebrates its 60th anniversary, having grown to be one of the region’s leading banks, serving over 20 million customers across 13 countries. We are committed to playing a key role in driving further economic growth and development across the region,” he said..
Shayne Nelson, Group Chief Executive Officer, said: “Emirates NBD delivered record income for the first half of 2023, rising by 50% to AED21.3 billion, driven by an excellent deposit mix and strong lending growth.
“The group’s earlier investment in technology provides a bedrock to launch many exciting new products and services and harness the power of generative AI to further transform Emirates NBD’s operations and enhance productivity,” he said.
Patrick Sullivan, Group Chief Financial Officer, said: “All business units generated a substantial increase in income, helping Emirates NBD deliver its strongest ever half-year for both income and profit.
“The group’s success in growing an inexpensive and diversified funding base has positioned the bank to continue benefiting from higher interest rates. The group is forward looking as it invests higher income to drive future efficiencies and new revenue streams,” he said.
“The UAE’s economy continues to perform strongly, and the group’s solid balance sheet is supporting its customers and help them grow both locally and internationally,” he added. – TradeArabia News Service
&uuid=(email))