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Fri, Nov 15, 2024 | Jumada al-Awwal 13, 1446 | DXB
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Emirates NBD’s 2023 profit surges 65% to record Dh21.5b
Dubai’s largest bank doubles dividend payout
Customers at an Emirates NBD branch. The bank’s asset base jumped 16 per cent in 2023. — KT file
Emirates NBD, Dubai’s largest lender, announced on Thursday a 65 per cent jump in profit for 2023 to Dh21.5 billion, the bank’s highest-ever, on the back of asset growth, a stable low-cost funding base, increased transaction volumes, and substantial impaired loan recoveries.
The bank’s asset base jumped 16 per cent in 2023 as the group’s market-leading deposit franchise grew Dh82 billion, with low-cost current and savings accounts adding an impressive Dh30 billion, the lender said in a statement.
Lending grew five per cent on strong retail loan growth, coupled with Dh70 billion new corporate lending. “The rock-solid balance sheet makes Emirates NBD a regional powerhouse. Credit quality improved significantly with impairment charge down 33 per cent and the impaired loan ratio improving to 4.6 per cent, the lowest level since 2009. All business units delivered an outstanding performance,” the bank said.
Fourth quarter 2023 profit rose three per cent to Dh4 billion year-on-year on higher income reflecting a buoyant regional economy. “In light of the group’s excellent performance, the board of directors is proposing a 100 fils dividend plus 20 fils celebrating its 60th anniversary, doubling last year’s dividend,” the bank said.
“Our network in Saudi Arabia expanded to 15 branches and we refreshed our branch presence in Egypt, enhancing our international footprint and digital capabilities to drive further growth,” said the statement.
From left: Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD; Hesham Abdulla Al Qassim, vice chairman and managing director; and Shayne Nelson, group chief executive officer. — Supplied photos
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD, said the bank delivered its highest ever profit of Dh21.5 billion in 2023, “reflecting a healthy regional economy and the success of the Group’s diversified business model.”
“Emirates NBD used its strong balance sheet to support economic growth in the UAE, providing over Dh 70 billion of new corporate lending, and a significant increase in lending to Small and Medium Enterprises. As a leading bank in the region, we were proud to be the Principal Banking Partner of COP28, underlining Emirates NBD’s commitment to the UAE’s Year of Sustainability,” said Sheikh Ahmed.
Hesham Abdulla Al Qassim, vice chairman and managing director of the bank, said the bank generated a record Dh43 billion of income “on significant asset growth, a stable low-cost funding base, increased transaction volumes and substantial recoveries.”
“Higher income and lower impairment charges drove Emirates NBD’s profits 65 per cent higher to a record Dh21.5 billion while a Dh70 billion of new lending helped deliver an impressive 18 per cent growth in corporate lending while retail financing grew by 19 per cent as Dubai successfully continues to be a beacon of economic growth,” said Al Qassim.
He said the bank’s market-leading deposit franchise grew Dh82 billion with low-cost current and savings accounts increasing by Dh30 billion, despite higher interest rates.
Shayne Nelson, group chief executive officer, said the group’s strong capital base enabled the balance sheet to grow 16 per cent to Dh863 billion in 2023. “International operations now generate 39 per cent of total income. Credit quality improved substantially on significant recoveries with the impaired loan ratio improving to 4.6 per cent, the lowest level since 2009,” said Nelson.
“With the UAE’s economy thriving, and the nation an attractive destination for ultra-high net-worth individuals from across the world, Emirates NBD competently caters to all sectors of the wealth spectrum,” said Nelson.
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