Emirates NBD Bank announced a jump in net profits during the first nine months of this year by 92 percent to 17.5 billion dirhams (about 4.8 billion dollars), compared to 9.1 billion dirhams.
In a statement on the Dubai Financial Market, the bank attributed the increase in profits during the period (9 months) to the significant growth in loans, the stability of the low-cost financing base, the increase in the volume of transactions, and the large collections operations.
Emirates NBD said that profits for the third quarter of 2023 exceeded 5 billion dirhams ($1.36 billion) for the third consecutive quarter, reflecting the prosperity of the regional economy.
Emirates NBD also strengthened its leadership position in the market in terms of deposits, which grew by 67 billion dirhams, including 33 billion dirhams in current and low-cost savings accounts in 2023, according to the statement.
Total income rose 44 percent to 32.7 billion dirhams thanks to an excellent deposit mix, strong loan growth and strong growth in fees and commissions across all business sectors.
The group recorded strong loan growth, rising by 8 percent thanks to strong momentum in retail lending with corporate banking completing historic deals for major multinational clients.
Deposits rose by 67 billion dirhams during the first nine months of 2023, including 33 billion dirhams from current and low-cost savings accounts.
The balance sheet increased by 13 percent to reach 836 billion dirhams at the end of the third quarter of 2023.
Earnings per share increased significantly by 96 percent to 271 fils.
Emirates NBD is participating as the main banking partner in the Conference of the Parties (COP28). The group successfully launched its sustainable financing framework and raised US$750 million through the listing of the largest green bond ever issued by a regional bank, helping our clients align with the UAE Vision 2030.
Highlights of financial results for the first nine months of 2023
- 92 percent rise in profits on the back of significant loan growth, stable low-cost funding base, increased transaction volumes and significant collections
- Total income increased by 44 percent to AED 32.7 billion on the back of our excellent deposit mix and strong growth in loans as well as in fees and commissions across all business segments.
- Strong growth in customer loans, increasing by 8 percent thanks to strong momentum in retail loans, with the Corporate Banking Department recording exciting deals concluded with a number of large multinational clients.
- Deposit mix is the main strong pillar. Deposits grew by AED 67 billion in the first nine months of 2023, including AED 33 billion from low-cost current and savings accounts.
- Net interest margin increased by 90 basis points compared to the same period of the previous year to reach 4.00 percent as a result of improved loan and deposit mix and higher interest rates.
- Impairment provisions decreased significantly by 54 percent compared to the same period of the previous year as a result of improved credit quality, reflecting the Group’s prudent approach to credit provisions.
- The group's balance sheet grew by 13 percent to reach 836 billion dirhams in the third quarter of 2023.
- Earnings per share increased significantly by 96 percent to reach 271 fils
Emirates NBD is one of only three banks in the UAE to have an unsupported investment grade rating on viability from Fitch.