Emirates NBD’s profit surged 65% to AED21.5 billion ($5.85 billion) in 2023 on asset growth, a stable low-cost funding base, increased transaction volumes and substantial impaired loan recoveries.

The Q4-23 profit of AED4 billion was up 3% y-o-y 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.

Emirates NBD’s asset base jumped 16% in 2023 as the group’s market-leading deposit franchise grew AED 82 billion, with low-cost current and savings accounts adding an impressive AED 30 billion.

Lending grew 5% on strong retail loan growth, coupled with AED 70 billion new corporate lending.

The rock-solid balance sheet makes Emirates NBD a regional powerhouse.

Credit quality improved significantly with impairment charge down 33% and the impaired loan ratio improving to 4.6%, the lowest level since 2009. All business units delivered an outstanding performance.

Our network in the Kingdom of 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, the bank said.

Key Highlights – 2023

65% surge in profit on significant balance sheet growth, a stable low-cost funding base, increased transaction volumes and substantial recoveries

• Total income substantially up 32% to AED43 billion on excellent deposit mix, solid loan growth and strong fee & commission growth across all business segments

• Healthy asset growth of 16% to AED863 billion at end 2023

• Solid loan growth, up 5% on record Retail financing momentum with AED70 billion of new corporate lending benefiting from our effective regional presence

• Deposit mix is a key strength growing a remarkable AED 82 billion in 2023 including AED 30 billion of low-cost Current and Savings Accounts

• Net interest margin rose 52 basis points in 2023 to 3.95% on favourable loan & deposit mix and higher interest rates

• Impairment allowances substantially down 33% y-o-y due to exceptionally strong recoveries achieved through the year with impaired loan ratio improving to 4.6%

• Earnings per share up significantly by 68% to 332 fils

Emirates NBD’s investment in customer focused services and products is propelling business growth 

• Record year for Emirates NBD Capital, with the investment bank raising USD 79 billion of capital on behalf of local, regional and international clients across 134 landmark deals

• Launched Tablet X, a tablet banking platform enabling instant account opening, immediate credit card issuance, personal loan request and fixed deposit opening

• New Escrow Management System introduced providing efficient Escrow services

• SME lending grew significantly in the UAE, supporting this bedrock sector of the economy

• One-third market share of UAE Credit Card spend as card spend grew 25% y-o-y

• ‘ENBD X’ mobile banking app successfully rolled out, using latest technology, security and user experience trends propelling it to the #1 banking app in the region

• Digital wealth platform expanded access to global equities, facilitating over AED 1 billion investments since launch, elevating ENBD X as a one-stop banking and wealth management solution 

• AUMs grew by an impressive 40% in 2023, reflecting Emirates NBD’s full-service platform

• Fully digital business banking onboarding process, with over 70% of onboarding now digital 

• KSA loan growth up significantly with Retail lending accelerating 27% y-o-y as branch network expands to 15

Looking to the future, Emirates NBD is transforming into a data-first and digital-focused bank, delivering ESG solutions to customers as their Net Zero ambitions drive economic activity.

• Carbon Trading and real-time FX quotes enhance product offering

• Fractional bonds offered for first time by a regional bank, widening customer access to fixed income instruments

• Paperless cash solutions offered to Corporate customers as part of on-going digitisation journey

• Generative AI implementation across business operations in partnership with Microsoft

• Implementing over 50 AI use cases to enhance digital customer service, risk analysis and operational efficiency

• Hub71 Partnership to Accelerate FinTech innovation

• Innovation Fund made exciting investment in Komgo to revolutionise its digital trade finance offering

• ESG-Linked Supply Chain Finance Programme launched in collaboration with major Corporates

• Net Zero goals commitment by signing UAE Climate-Responsible Companies Pledge

• Reduced Scope 1 emissions by 8% and Scope 2 missions by 20% in 2023

• Gender equality commitment by signing UAE Gender Balance Pledge

• Sustainable Finance Framework published by Emirates NBD and DenizBank reinforcing Group-wide dedication and allowing green and sustainability-linked bond issuance

• $750 million green bond issued, the largest ever from a bank in the Menat region

• Microsoft Sustainability Manager implemented to drive digital transformation in sustainability operations

• Automated ESG Scoring Solutions provided by partnering with CoriolisESGincome instruments

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “Emirates NBD delivered its highest ever profit of AED 21.5 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 AED 70 billion of new corporate lending, and a significant increase in lending to Small and Medium Enterprises.”

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said: “Emirates NBD generated a record AED 43 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% higher to a record AED 21.5 billion.”

Shayne Nelson, Group Chief Executive Officer said: “The Group’s strong capital base enabled the balance sheet to grow 16% to AED 863 billion in 2023. International operations now generate 39% of total income.” – TradeArabia News Service