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Emirates NBD, the UAE’s leading bank, posted a net profit of AED13 billion (US$3.53 billion) in 2022, up 40% from the previous year, pointing to strong economic growth in the region.
Fourth quarter (Q4) profit was exceptionally strong at AED 3.9 billion, up 94% year-on-year, reflecting improved margins and lower risk costs. 2022 was a record year for retail lending and client transactions, with strong performance across all business segments and 36% revenue growth.
Reflecting continued business optimism, new corporate lending grew by AED50 billion in 2022, with further growth in current and savings accounts of AED20 billion improving the deposit mix, supported by strong industry liquidity.
Credit quality remained healthy, reflecting a strong economy in the region, with impairment charges down 12%. We opened new branches in Saudi Arabia, Egypt and India, accelerating investment in our international footprint and digital capabilities to support further growth.
Total revenue up 36% to AED 32.5 billion, with strong deposit mix and higher interest rates impacting margins and strong growth across all business segments and products
The bank has increased its dividend by a massive 20% to 60 fils per share.
Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Emirates NBD, said: “Emirates NBD’s profit will grow by 40% to reach Dh13 billion in 2022. Ram, reflecting strong regional economic growth and the success of the Group’s diversified business model. As the region’s leading bank, we are proud to support the ‘D33’ Dubai Economic Agenda, which aims to reduce the size of the UAE’s economy within 10 years double and make Dubai one of the top three international tourism and business destinations.
“Emirates NBD has played a leading role in completing more than AED31 billion IPOs by 2022, boosting Dubai’s economy and developing the equity capital market. Our focus on long-term succession planning has enabled talented Emiratis to rise to senior positions, I feel We are very proud that 70% of our Group Executive Committee in the UAE are Emirati. Given the strong performance of the Group, we are proposing a 20% increase in the cash dividend to 60 fils per share.”
Hesham Abdulla Al Qassim, Deputy Chairman and Managing Director, said: “Emirates NBD achieved record revenue and operating profit in 2022, with total revenue up 36% to AED32. Increase and margin improvement from efficient funding base and higher interest rates. International business, providing diversification and growth opportunities, accounted for 39% of total revenue.
Aided by a booming regional economy and our digital transformation, retail financing and AED50 billion in new business lending saw record growth and new lending surged. Earlier this month, we became the first bank to issue a public dirham bond after the UAE Federal Government established a dirham yield curve to strengthen our national identity. The group expanded its international economic ties by opening more branches in the Kingdom of Saudi Arabia, India and Egypt. “
Group chief executive Shayne Nelson said: “We maintained our strong revenue momentum, kept costs under control and benefited from write-backs and recovery, reflecting the health of the regional economy. Profit for Q4-22 AED 3.9 billion, an increase of 94%, reflecting improved margins and lower risk costs.”
“Liquidity in the UAE banking sector remains healthy, with our AED20 billion increase in current and savings account balances in 2022, enabling the group to benefit from rising interest rates.
“As Emirates NBD celebrates its 60th anniversary in 2023, we have reshaped our leadership team, including the well-deserved appointment of a number of Emirati executives, the appointment of an ESG group head and the establishment of a corporate venture capital fund to capitalize on future Growth opportunities. The Dubai economy is expected to grow strongly through 2023 and the Group’s strong balance sheet is well positioned to support our clients as they grow locally and internationally,” added Nelson. – trade arab news agency
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