Emirates NBD, one of the largest banking groups in the Middle East in terms of assets, has reported a profit surge of 12% year-on-year to Dh6.7 billion in the first three months of 2024.
The bank’s profit rose by 67% compared to the previous quarter, propelled by regional growth, increased transaction volumes, a low-cost funding base and substantial impaired loan recoveries.
The group’s asset base grew 5% and surpassed Dh900 billion, with retail lending having its strongest-ever quarter, marking Dh9 billion. The bank’s branch presence in the Kingdom of Saudi Arabia more than doubled to 18 branches over the last year, as the group’s corporate lending reached Dh12 billion.
“We refreshed our Egyptian franchise, as our enhanced international footprint and digital capabilities drove further growth,” the bank said in a statement to DFM, where its shares are listed.
Total operating income was Dh10.66 billion versus Dh10.46 billion the previous year. Deposits were up 13% compared to 2023, at Dh610 billion as of the end of March, while gross loans were up 5% at Dh 492 billion. Net interest income was Dh5.96 billion and expenses were brought down by 8%.
“The credit environment remains healthy, and clients continue to benefit from a buoyant economy with further regularisation of loan payments, leading to a net impairment credit of Dh 0.9 billion,” said Patrick Sullivan, Group Chief Financial Officer at Emirates NBD. “The Group’s low-cost CASA deposit base grew again in the first quarter, enabling us to benefit from higher interest rates.”
The bank had recorded an impairment loss of Dh0.5 billion in the same period a year prior.
Emirates NBD’s market-leading deposit franchise grew Dh26 billion in the first quarter, with customer campaigns, digital banking and promotions delivering a remarkable Dh 21 billion increase in low-cost current and savings accounts.
The group reported a 65% surge in net profit to Dh21.5 billion in 2023, fuelled by asset growth, stable funding, increased transactions, and loan recoveries.