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Dubai: Emirates NBD’s H1 profits jump 130% to record Dh12.3 billion

Its balance sheet surpasses Dh800 billion milestone for first time

Dubai’s largest bank on Thursday announced a massive increase of 130 per cent in profits to a record Dh12.3 billion in the first half of 2023 on strong current and savings accounts growth coupled with a healthy increase in lending.

The lender said its balance sheet surpassed the Dh800 billion milestone for the first time ever. Its earnings per share were up significantly by 138 per cent to 190 fils.

Deposits grew Dh53 billion in the first half, including Dh37 billion of low-cost current and savings accounts.

Its loans were up five per cent while net interest margin rose significantly by 110 basis points year-on-year to 3.96 per cent.

Lending increased by Dh23 billion with the conventional and Islamic retail franchise having its strongest ever half-year for the acquisition of loans.

The Banker magazine recently named Emirates NBD the strongest bank in the Middle East, based on the Tier 1 capital position of the regional lenders.

Hesham Abdulla Al Qassim, vice-chairman and managing director, Emirates NBD, said the bank’s investment in technology & AI is driving new product delivery and propelling growth. “Emirates NBD looks forward to welcoming COP28 to the UAE and we offer exciting ESG solutions to customers to empower them to meet their net-zero ambitions and sustainability goals,” he said.

Patrick Sullivan, group CFO, Emirates NBD, said all business units generated a substantial increase in income, helping the lender to deliver its strongest-ever half-year for both income and profit. “The Group’s success in growing an inexpensive and diversified funding base has positioned the Bank to continue benefiting from higher interest rates. The Group is forward-looking as it invests higher income to drive future efficiencies and new revenue streams,” he said.

Sullivan said impairment allowances are substantially lower, with a 50 per cent year-on-year improvement while lending grew by 5 per cent. “The UAE’s economy continues to perform strongly, and the Group’s solid balance sheet is supporting its customers and helping them grow both locally and internationally,” he said.

Total income grew 50 per cent to Dh21.3 billion on an excellent deposit mix with higher interest rates feeding through to margins and strong growth across all business segments and products

The lender said its second quarter was also a record quarter with income growing to Dh10.8 billion and profit rising to Dh6.2 billion with all units delivering higher income and profit.