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.