Emirates NBD, one of the largest banking groups in the Middle East in terms of assets, reported a 65% surge in net profit to Dh21.5 billion in 2023, fuelled by asset growth, stable funding, increased transactions, and loan recoveries.
The bank’s Q4-23 profit of Dh4 billion was up 3% year-on-year on higher income, reflecting a buoyant regional economy.
In light of the group’s performance, the board of directors proposed a 100 fils dividend and an additional 20 fils since the Dubai bank is marking its 60th anniversary.
“Emirates NBD used its strong balance sheet to support economic growth in the UAE,
providing over Dh70 billion of new corporate lending and a significant increase in lending to Small and Medium Enterprises,” said HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD.
Total income surged 32% to Dh43 billion due to deposit mix, solid loan growth and strong fee and commission growth across all business segments.
The bank recorded a healthy asset growth of 16% to Dh863 billion at the end of 2023.
Net interest margin rose 52 basis points in 2023 to 3.95% on favourable loan and deposit mix and higher interest rates.
“Emirates NBD generated a record Dh43 billion of income on significant asset growth, a stable, low-cost funding base, increased transaction volumes and substantial recoveries,’ said Hesham Abdulla Al Qassim, Vice Chairman and Managing Director.
Emirates NBD’s impairment allowances were down 33% year-on-year due to strong recoveries achieved throughout the year, with the impaired loan ratio improving to 4.6%.
Its asset base jumped 16% in 2023 as the group’s market-leading deposit franchise grew Dh82 billion, with low-cost Current and Savings Accounts adding an impressive Dh30 billion.
“With the UAE’s economy thriving and the nation an attractive destination for ultra-high-net-worth individuals from across the world, Emirates NBD competently caters to all sectors of the wealth spectrum,” said Shayne Nelson, Group CEO.
Lending grew 5% on strong retail loan growth, coupled with Dh70 billion in new corporate lending.
The bank’s credit quality improved significantly, with impairment charges down 33% and the impaired loan ratio improving to 4.6%, the lowest level since 2009.
Emirates NBD said that its network in Saudi Arabia expanded to 15 branches and has refreshed its branch presence in Egypt, enhancing our international footprint and digital capabilities to drive further growth.
