Emirates NBD’s Q1 profit doubles to record AED6b

DUBAI / WAM

Emirates NBD’s profit more than doubles to a record AED 6 billion in the first quarter of 2023, demonstrating the success of the group’s diversified business model and a healthy regional economy. This is also a record quarter for income which exceeds AED10 billion for the first time ever.
The exceptional increase in profit reflects higher margins, growing non-funded income and a lower cost of risk on significant recoveries. Healthy sector liquidity helped deposits grow by AED 35 billion or 7% including a further AED19 billion increase in current and savings accounts, supporting a 3% increase in lending and impressive asset growth.
Credit quality improved due to substantial recoveries reflecting the region’s growing economy with impairment charge down 66%. Every business unit delivered higher income and improved profitability. We have launched new digital products and services and recharged our strategy within our international footprint to deliver future growth.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, said, “Emirates NBD’s profits more than doubles to a record AED 6 billion in the first quarter of 2023, reflecting the success of the group’s diversified business model and a healthy regional economy. As a leading bank in the region, we are fully aligned with Dubai’s commitment to continue developing and stimulating entrepreneurship, attracting more foreign investment and consolidating Dubai’s position as a land of opportunity and innovation.”
Shayne Nelson, Group Chief Executive Officer, said, “Emirates NBD delivers record quarterly income for the first quarter of 2023 as total income grew 64% to AED 10.5 billion on increased transaction volumes and improved margins from an efficient funding base and higher interest rates.”
‘’We also delivered a record AED 6 billion quarterly profit on the back of higher income and a substantially lower cost of risk aided by significant recoveries, the highest ever quarterly profit delivered by a UAE bank. Q1-23 is the strongest ever quarter for retail lending with over 144,000 new credit cards issued and over AED 8 billion of retail loan disbursements.”
Patrick Sullivan, Group Chief Financial Officer, said, “Emirates NBD’s diverse business model delivers record income, profit and retail disbursements during the quarter. Higher income enables us to accelerate our international expansion and investment in digital and data, which will deliver alternative revenue streams and offset against the impact from expected future interest rate cuts.
‘’Strong recoveries and the low cost of risk in the first quarter enables us to improve our credit quality guidance. Liquidity in the UAE banking sector remains healthy and we grew deposits by AED 35 billion in the first quarter of 2023, including a AED 19 billion increase in Current and Savings Account balances.”
“Dubai’s economy continues to perform strongly and the Group’s solid balance sheet is supporting its customers and help them grow both locally and internationally.”