Emirates NBD’s H1 2023 profit surge 130% to record AED 12.3 billion.
DUBAI, 27th July, 2023 (WAM) -- Emirates NBD’s profit surge 130 percent to a record AED 12.3 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 AED 10.8 billion and profit rising to AED 6.2 billion, reflecting the buoyant regional economy. The exceptional profitability reflects higher margins, growing non-funded income and a lower cost of risk on significant recoveries.
Emirates NBD’s market-leading deposit franchise added AED 53 billion of deposits including AED 37 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 percent 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 agile 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.
Key Highlights – First Half 2023
130percent profit growth on higher margins, improved deposit & loan mix and substantial recoveries
Total income up 50 percent to AED 21.3 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 AED 53 billion in H1-23 including AED 37 billion of low-cost Current and Savings Accounts
Loans up an impressive 5 percent 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 percent
Impairment allowances substantially down 50 percent y-o-y as credit quality improved, reflecting the Group’s prudent approach to credit provisions
Balance Sheet surpasses AED 800 billion milestone for the first time ever
Earnings per share up significantly by 138 percent to 190 fils, underlying up 92 percent to 211 fils
Awarded ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence Awards 2023
Lending increased during H1-23 by AED 23 billion with the conventional and Islamic retail franchise having its strongest ever half-year for acquisition of loans
Deposits grew by AED 53 billion in the first half of 2023, including a AED 37 billion increase in Current and Savings Account balances helping maintain a stable, efficient funding base.
Liquidity remains strong with the Liquidity Coverage Ratio at 217 percent and the Advances to Deposits Ratio at 79 percent.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said: “Emirates NBD’s profit hit a record high of AED 12.3 billion for the first half of 2023 reflecting the Group’s growing regional presence and visionary investment in technology & AI which is driving new product delivery and propelling growth.
Emirates NBD 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.
Emirates NBD looks forward to welcoming COP28 to the UAE and we are pleased to offer exciting ESG solutions to our customers to empower them to meet their net-zero ambitions and sustainability goals.
I am delighted that Emirates NBD was recognised as the ‘Best Bank in the Middle East’ and ‘Best Bank in the UAE’ at the Euromoney Excellence Awards 2023,” he concluded.