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RETAIL LENDING STRONGEST EVER

Emirates NBD Q1 profit surges 67% to record $1.82bn

DUBAI, April 25, 2024

Emirates NBD’s profit surged 67% to a record AED6.7 billion ($1.82 billion) in the first quarter of 2024 compared to the previous quarter and up a strong 12% y-o-y, propelled by regional growth, increased transaction volumes, a low-cost funding base and substantial impaired loan recoveries. 
 
The group’s asset base surpassed AED900 billion as retail lending had its strongest ever quarter and corporate lending closed landmark deals across the region, the bank said.
 
The branch presence in the Kingdom of Saudi Arabia more than doubled to 18 over the last year and the bank refreshed its Egyptian franchise, as it enhanced international footprint and digital capabilities drove further growth, it said. 
 
Emirates NBD’s market-leading deposit franchise grew AED26 billion in the first quarter, with customer campaigns, digital banking and promotions delivering a remarkable AED21 billion increase in low-cost current and savings accounts. Credit quality improved significantly, and the group registered an impairment credit on regularisation of payments as clients benefited from a buoyant economy. All business units delivered an outstanding performance. Retained earnings boosted capital ratios and the rock-solid balance sheet makes Emirates NBD a regional powerhouse, providing the platform for future growth, it said.
 
Other Key Highlights – First Quarter 2024
 
Total income up 3% q-o-q to AED10.7 billion on excellent deposit mix, solid loan growth and strong fee & commission growth across all business segments
5% asset growth as balance sheet surpasses AED900 billion milestone 
Solid loan growth, up 2.3% in the first quarter on record AED9 billion retail financing with corporate gross lending up AED24 billion as landmark deals across the region were successfully closed 
Deposit mix is a key strength growing AED 26 billion in the first quarter, including a remarkable 
AED 21 billion of low-cost Current and Savings Accounts 
Net interest margin remains very strong at 3.52%
Impairment credit of AED 0.9 billion on regularisation of loan payments as clients benefit from a buoyant economy with impaired loan ratio improving to 4.4% 
Earnings per share up significantly to 104 fils from 93 fils in the first quarter of 2023
AUMs grew by an impressive 37% y-o-y, reflecting early success of our ongoing wealth management strategy 
AED 500 million of competitive financing allocated to SMEs to support 'Dubai International Growth Initiative', facilitating Dubai based SMEs’ global expansion
20-year presence in Kingdom of Saudi Arabia with branch network doubling to 18 in last year driving 19% loan growth in Q1-24
Emirates Islamic celebrates 20 years of providing innovative Sharia’h compliant banking, serving over 650,000 customers as it delivered a record profit of AED811 million in Q1-24 
Leading GCC bank in ESG ranked by Sustainalytics and rated 5 out of 311 diversified banks globally 
ESG Report 2023 published in Q1-24 reinforcing our commitment to transparency in ESG reporting
Carbon future contract trading facility launched, giving clients access to this rapidly growing asset class and align with the UAE’s Net Zero action plan 
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, said: “Emirates NBD’s profit surged 67% to a record AED6.7 billion in the first quarter of 2024, propelled by regional growth, increased transaction volumes, a low-cost funding base and substantial impaired loan recoveries.
“I am extremely proud that Emirates Islamic celebrates 20-years of providing innovative Sharia’h compliant banking to over 650,000 customers across the UAE, as it delivered a record profit of AED811 million in Q1-24.
“In support of the Government of Dubai’s 'Dubai International Growth Initiative', we have allocated 
AED500 million of competitively priced financing to Dubai based SMEs to facilitate their global expansion
“With the UAE’s economy thriving, and the nation an attractive destination for ultra-high net-worth individuals from across the world, Emirates NBD continues to innovate with market leading products and services to competently cater to all sectors of the wealth spectrum,” he said.  –TradeArabia News Service
 



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