Dear Customer: The Arab Lawyers Network apologizes for the temporary inconvenience related to the verification code via mobile and would like to inform you that the code will be sent via email. Please contact customer services for any further inquiries.

Press Dossier    By Date   28/01/2023 Emirates NBD’s 2022 profit jumps 40% to Dh13 billion

Khaleej Times, Saturday, Jan 28, 2023 | Rajab 6, 1444

‏Emirates NBD’s 2022 profit jumps 40% to Dh13 billion

Emirates: Dubai’s largest lender Emirates NBD reported on Thursday a 40 per cent jump in 2022 annual profits to Dh13 billion on the back of “an exceptionally strong” fourth quarter performance.

The fourth-quarter profits soared 94 per cent to Dh3.9 billion year-on-year basis, reflecting improving margins and a lower cost of risk.

“2022 was a record year for retail lending and customer transactions, with all business units delivering outstanding performance, driving income 36 per cent higher. New corporate lending grew by Dh50 billion in 2022 reflecting continued business optimism and Dh20 billion further Current and savings account growth improved the deposit mix, helped by strong sector liquidity,” the bank said in a statement.

In 2022, total assets grew eight per cent to Dh742 billion and total income surged 36 per cent to Dh32.5 billion on an “excellent deposit mix” with higher interest rates feeding through to margins and strong growth across all business segments and products while net interest margin rose significantly to 3.43 per cent.

Earnings per share went up significantly by 43 per cent to 198 fils as the proposed dividend rose 20 per cent to 60 fils per share.

The bank said the performance demonstrated the resilience of the group’s diversified business model and strong regional economic growth. Credit quality remains healthy reflecting the region’s strong economy with impairment charges down 12 per cent. The bank has opened new branches in Saudi Arabia, Egypt and India, accelerating investment in its international footprint and digital capabilities to support further growth.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD, said Emirates NBD would support the ‘D33’ Dubai Economic Agenda which aims to double the size of the emirate’s economy in 10 years and make Dubai one of the top three international destinations for tourism and business. Emirates NBD played a lead role in delivering over Dh31 billion of IPOs in 2022, growing the Dubai economy and developing the equity capital markets.

“Our focus on long-term succession planning has led to talented Emiratis moving into senior roles and I am extremely proud that 70 per cent of our group executive committee in the UAE are Emiratis. In light of the group’s strong performance, we are proposing a 20 per cent increase in the cash dividend to 60 fils per share,” said Sheikh Ahmed.

Hesham Abdulla Al Qassim, vice-chairman and managing director of the bank, said the Dh32.5 billion on increased transaction volumes and improved margins from an efficient funding base and higher interest rates.

“International operations provide diversification and growth opportunities, contributing 39 per cent of total income," he said.

Shayne Nelson, group chief executive officer, Emirates NBD, said the lender maintained strong income growth momentum, kept firm control of costs, and benefited from write-backs and recoveries, reflecting a healthy regional economy.

“Liquidity in the UAE banking sector remains healthy and we grew current and saving account balances by Dh20 billion during 2022, enabling the group to benefit from interest rate rises. Dubai’s economy is forecast to deliver strong growth in 2023 and the Group’s solid balance sheet is ready to support our customers and help them grow both locally and internationally,” said Nelson.

Page 1 Of 1