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20% INCREASE IN DIVIDEND

Hesham Abdulla Al Qassim and Shayne Nelson

Emirates NBD 2022 profit rises 40% to top $3.5bn

DUBAI, January 26, 2023

Emirates NBD, a leading bank in the UAE, has posted net profit of AED13 billion ($3.53 billion) in 2022, marking an increase of 40% over the previous year, demonstrating strong regional economic growth.

The fourth quarter (Q4) profit was exceptionally strong at AED3.9 billion, up 94% y-o-y, reflecting improving margins and a lower cost of risk. 2022 was a record year for retail lending and customer transactions, with all business units delivering an outstanding performance, driving income 36% higher.

New corporate lending grew by AED50 billion in 2022 reflecting continued business optimism and AED20 billion further Current and Savings Account growth improved the deposit mix, helped by strong sector liquidity.

Credit quality remains healthy reflecting the region’s strong economy with impairment charge down 12%. We have opened new branches in KSA, Egypt and India, accelerating investment in our international footprint and digital capabilities to support further growth.

Total income was up 36% to AED32.5 billion excellent deposit mix with higher interest rates feeding through to margins and strong growth across all business segment and products

The bank has substantially increased dividend by 20% to 60 fils per share.

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “Emirates NBD’s profits jumped 40% to AED13 billion in 2022, reflecting strong regional economic growth and the success of the Group’s diversified business model. As a leading bank in the region, we are proud to support the ‘D33’ Dubai Economic Agenda which aims to double the size of the Emirate’s economy in 10 years and make Dubai one of the top three international destinations for tourism and business.

“Emirates NBD played a lead role in delivering over AED31 billion of IPOs in 2022, growing the Dubai economy and developing the equity capital markets. Our focus on long term succession planning has led to talented Emiratis moving into Senior roles and I am extremely proud that 70% of our Group Executive Committee in the UAE are Emiratis. In light of the Group’s strong performance, we are proposing a 20% increase in the cash dividend to 60 fils per share.”

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said: “Emirates NBD delivered record income and operating profit in 2022 as total income grew 36% to AED32.5 billion on increased transaction volumes and improved margins from an efficient funding base and higher interest rates. International operations provide diversification and growth opportunities, contributing 39% of total income.

New lending increased substantially with record growth in retail financing and AED50 billion of new corporate lending, helped by a buoyant regional economy and our digital transformation. Earlier this month we became the first bank to issue a public Dirham-bond following the UAE Federal Government’s establishment of a dirham yield curve, reinforcing our national identity. The Group expanded its international economic links with further branches opened in the Kingdom of Saudi Arabia, India and Egypt.”

 Shayne Nelson, Group Chief Executive Officer said: “We maintained strong income growth momentum, kept a firm control of costs and benefited from writebacks and recoveries, reflecting a healthy regional economy. Profit of AED3.9 billion in Q4-22 increased 94% reflecting improving margins and a lower cost of risk.”

“Liquidity in the UAE banking sector remains healthy and we grew Current and Saving Account balances by AED20 billion during 2022, enabling the Group to benefit from interest rates rises.

“As Emirates NBD celebrates its 60th anniversary in 2023 we have reshaped our leadership team, including the deserved appointment of a number of Emirati executives, the appointment of a Group Head of ESG and establishing a Corporate Venture Capital Fund to take advantage of future growth opportunities. Dubai’s economy is forecast to deliver strong growth in 2023 and the Group’s solid balance sheet is ready to support our customers and help them grow both locally and internationally,” Nelson added. – TradeArabia News Service




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