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Emirates NBD achieved its strongest quarterly profit ever, rising to a record high of 6 billion dirhams in the first quarter of 2023, up 119% year-on-year and 54% year-on-quarter, thanks to an improved loan and deposit mix, as well. Higher interest rates have a clear impact on improving margins. Unfunded income increased by 54% year-on-year on the back of higher domestic and international card transaction volumes, along with growth in foreign exchange and derivatives income.
782 billion dirhams of assets, a growth of 5%
35 billion dirhams, growth in deposits, up 7%
144,000 new credit cards, a growth of 84%
8 billion dirhams in loans to individuals, an increase of 3%
Total income increased by 64% to AED 10.5 billion on the back of our excellent deposit mix, higher interest rates which had a clear impact on improving margins and strong growth across all business and product segments. This also marks a record quarter in terms of revenue, which exceeded 10 billion dirhams for the first time ever.
Strong sector liquidity supported deposit growth of AED 35 billion, or 7%, including an additional increase of AED 19 billion in current and savings accounts, which led to a 3% increase in lending activities and exceptional growth in assets. Credit quality improved due to higher collections, highlighting the growth of the economy in the region, with impairment provisions declining by 66%. All business units also achieved higher income and improved profitability. During the period, we introduced new digital products and services and updated our strategy within our international presence to support future growth opportunities.
The bank achieved its strongest performance ever in this quarter in the field of retail lending activities, as the value of disbursed loans amounted to more than 8 billion dirhams for the first quarter.
Customer loans increased by 3% in the first quarter of 2023, which witnessed the highest rate of issuance of loans to individuals ever, for both the conventional and Islamic banking sectors, in addition to a strong momentum for new loans to companies.
During the quarter, the Non-Performing Loan Ratio improved to 5.6%, due to higher re-enrollments and collections, while the Coverage Ratio improved to 152%, demonstrating the continued relevance and effectiveness of the Group’s successful loan management and prudent approach to Credit risk management
The credit card business witnessed a growth of 84% compared to the same period in the previous year, as 144,000 new credit cards were issued in the first quarter of 2023, and the month of March 2023 witnessed a record number of card disbursement, exceeding 13 billion dirhams during the month.
Deposits grew by 7%, or 35 billion dirhams, in the first quarter of 2023, including an increase of 19 billion dirhams in current and savings accounts, which indicates the feasibility and effectiveness of our strategy to attract deposits and reduce the cost of funds.
The bank witnessed a significant increase in earnings per share by 117% to reach 93 fils, an increase of 159%.
The total assets of the bank increased by 5% to reach 782 billion dirhams.
Denizbank’s profit increased by 37% to 861 million dirhams, as a result of strong collections
Hisham Al-Qasim: We are committed to attracting more foreign investment
Hisham Abdullah Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, said: “Emirates NBD’s profits more than doubled to reach a record level of 6 billion dirhams in the first quarter of 2023, which reflects the success of the group’s diversified business approach and the good regional economy. And, as a leading bank in the region, we fully support Dubai’s commitment to continue developing and stimulating entrepreneurship, attracting more foreign investment and consolidating its position as a city of opportunity and innovation. Local yield, making it easier for Emirati companies to access capital markets in local currency. In response to the catastrophic earthquake disaster that struck Turkey in February, Emirates NBD Group immediately donated 350 million Turkish liras to support relief efforts. The group also provides support to clients. affected by postponing their financial obligations.
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Shayne Nelson: The results support an efficient financing structure and higher interest rates
Shayne Nelson, Group Chief Executive Officer, said: Emirates NBD achieved record income in the first quarter of 2023, as total income grew by 64% to reach 10.5 billion dirhams, on the back of higher transaction volumes, improved margins as a result of the performance of the effective financing structure and higher interest rates. Interest, we also achieved a record quarterly profit of 6 billion dirhams, mainly due to higher income and a significantly lower cost of risk thanks to large collections, and it is considered the highest quarterly profit achieved by an Emirati bank.
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Patrick Sullivan: The liquidity of the banking sector in the UAE is good
The first quarter of 2023 is the strongest quarter ever for retail lending, with more than 144,000 new credit cards issued and more than 8 billion dirhams disbursed in retail loans.
Patrick Sullivan, Group Chief Financial Officer, said: “The diversified business model of Emirates NBD contributed to achieving record levels of income, profits and retail lending activities during the quarter. The high income enables us to accelerate our international expansion and invest in digital technology and data, which will provide revenue streams Alternative and offsets the effect of expected decreases in future interest rates.
He added, liquidity is still in the cat
