Total assets rose 1% to 694 billion dirhams
Emirates NBD net profit jumps 18% to 2.7 billion dirhams in the first quarter
Customer loans increased 1% to 425 billion dirhams.
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Hisham Abdullah Al Qassim: "The bank's profit growth reflects the strength of the regional economic recovery, and the success of the group's diversified business approach."
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Emirates NBD achieved its highest quarterly profit since 2019. Net profit jumped 18% to AED 2.7 billion, as the first quarter of 2022 was a record period for retail loan activity, deposit growth and customer transactions.
The bank confirmed, in a statement yesterday, that the credit quality across all of the group's locations continues to show improvement, with the impairment rate declining by 20%.
These results were based on the momentum of the economic recovery in 2021. Today, given the strength of its profitability and balance sheet, the Group is well positioned to anticipate an expected rise in interest rates, and will continue to invest in its international expansion and digital capabilities to support future growth opportunities.
Emirates NBD is also proud to have played a prominent role in the initial public offering of Dubai Electricity and Water Authority, providing customers with a comprehensive digital platform from registration and underwriting to making payments.
Total income increased by 3% compared to the same period of the previous year, reaching 6.4 billion dirhams thanks to the improved mix of loans and less expensive deposits. The initial indications of raising interest rates had a clear impact on the improvement of margins, and current and savings account balances grew by a record amount of 18 billion. dirhams, which led to a further improvement in financing costs.
Total assets increased by 1% to 694 billion dirhams despite the depreciation of the Turkish lira.
Customer loans increased by 1% to reach 425 billion dirhams, with another record performance in retail financing for the first quarter of 2022.
The deposit mix witnessed the highest level ever for current and savings account balances, which rose by 18 billion dirhams in the first quarter of 2022, which put the group in a very good position in anticipation of the rise in interest rates.
The percentage of impaired loans slightly increased by 0.02% to reach 6.4% during the first quarter of 2022, accompanied by an improvement in the coverage ratio, which reached 128.5%, which reflects the group's precautionary approach towards creating credit provisions.
Hisham Abdullah Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, said: “Emirates NBD’s profits jumped by 18% compared to the same period in the previous year to reach AED 2.7 billion, which reflects the strength of the regional economic recovery and the success of the diversified business approach. for the group.
The bank is proud of its pioneering role in the initial public offering of Dubai Electricity and Water Authority, as it provided customers with a comprehensive digital platform, from registration and underwriting to making payments.”
For his part, Group CEO Shane Nelson said: "Emirates NBD achieved strong results coupled with income growth and lower provisions, which led to an 18% increase in profits compared to the same period last year."
He explained that "the remarkable growth in the volume of loans that we were able to achieve in the first quarter of 2022 reflects the economic expectations that are more optimistic."
“We have increased the indicative margin in light of the rise in interest rates.
International operations contributed 37% of total income in the first quarter of 2022, and Denizbank's profitability has stabilized despite the depreciation of the Turkish lira.
342 million dirhams net profit of «Emirates Islamic»
Emirates Islamic announced yesterday its financial results for the period ending on March 31, 2022, where operating profit increased by 17% compared to the same period last year, while net profit increased to 342 million dirhams.
Total income increased by 14% compared to the same period of the previous year on the back of higher funded and unfunded income.
Operating costs have also increased by 10% compared to the same period in the previous year.
Provisions for impairment decreased by 72% compared to the same period of the previous year.
The net profit rate margin was 2.90%.
With a strong capital and liquidity base, as well as a healthy diversification of deposit mix, the bank continued to provide support to its clients.
The Group will continue to invest in its international expansion and digital capabilities to support future growth opportunities.
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