A strong jump contributes to a 20% increase in the proposed dividend
Emirates NBD profits rise 40% to 13 billion dirhams in 2022
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Emirates NBD announced a 40% jump in its profits during the year 2022 to reach 13 billion dirhams, which confirms the effectiveness and flexibility of the group's diversified business model and strong regional economic growth, proposing a 20% increase in cash dividends to reach 60 fils per share.
And the bank stated in a statement that the profits of the last quarter of 2022 were exceptionally strong, after it amounted to 3.9 billion dirhams, an increase of 94% compared to the same period in the previous year.
record year
And Emirates NBD considered 2022 a record year in terms of performance, especially with regard to individual loans and customer transactions, pointing out that all business units showed outstanding performance, which led to an increase in income by 36%, and new corporate loans grew by 50 billion dirhams, This reflects the continued positive outlook and the level of optimism that prevails in the business sector, as well as the growth of current and savings account balances by 20 billion dirhams, and the improvement of the deposit mix, supported by the strong liquidity of the sector.
The bank affirmed that the credit quality remains good, which shows the strength of the economy in the region, with the depreciation rate declining by 12%.
financial results
According to the financial results, the bank achieved a 40% growth in profits on the back of improved margins, unprecedented demand for retail and new corporate loans amounting to 50 billion dirhams, growth in current and savings account balances by 20 billion dirhams, and a significant decrease in the cost of risk.
Net profit increased by 40% compared to the same period in 2021, to reach 13 billion dirhams, while total income increased by 36%, to 32.5 billion dirhams.
Loans and deposits
The bank revealed a strong performance of the activities of individual loans and Islamic financing, which coincided with the provision of new loans to companies in the amount of 50 billion dirhams, offset by the payment of large amounts of government loans, at a time when current and savings accounts grew by 20 billion dirhams in 2022.
In turn, the earnings per share increased remarkably by 43% to reach 198 fils, which constitutes a basic increase of 79%, in addition to the increase in the proposed dividends by 20% to reach 60 fils per share.
As for total assets, it increased by 8% to reach 742 billion dirhams.
Support the economy
Emirates NBD affirmed the support of Dubai's economy by assuming a leading role in supporting subscriptions to initial public offerings, amounting to 31.1 billion dirhams, through a comprehensive website dedicated to subscription that allows immediate registration through a highly developed digital platform.
He stressed that costs are still under control and are well controlled, while the group is opening more branches in Saudi Arabia, India and Egypt, and is accelerating investment in digital technology and data to stimulate future growth.
The bank stated that the liquidity coverage ratio of 182% and the first-tier ratio of common shares of 15.4% reflect the strength of the group's balance sheet, which is used to empower customers and provide new opportunities for prosperity.
According to the statement, Emirates NBD and Emirates Islamic enjoy a market share of about 30% of debit and credit card spending in the UAE, with more than one million transactions processed per day.
business model
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Board of Directors of Emirates NBD, said: “Emirates NBD’s profits jumped by 40% to reach 13 billion dirhams in 2022, which reflects the strong regional economic growth and the success of the group’s diversified business model.”
His Highness added, "As a leading bank in the region, we are proud to support (Dubai Economic Agenda D33), which aims to double the size of Dubai's economy over the next 10 years, and strengthen its position among the top three international destinations for tourism and business."
His Highness affirmed that Emirates NBD played a leading role in supporting the subscription to initial public offerings, amounting to 31.1 billion dirhams in 2022, contributing in turn to the development of Dubai's economy and capital markets.
His Highness continued, "Our focus on long-term succession plans has led to the appointment of Emirati talents to senior leadership positions, and I feel very proud that 70% of the group's executive management team members in the UAE are Emiratis."
His Highness said, "In light of the strong performance of the group, we propose an increase of 20% in cash dividends, to reach 60 fils per share."
Profits are exceptional
For his part, Vice Chairman and Managing Director of Emirates NBD Group, Hisham Abdullah Al Qassim, said that the bank was able to achieve strong and exceptional operating income and profits in 2022, as total income grew by 36% to reach 32.5 billion dirhams, on the back of an increase in the volume of Transactions and higher margins from the effective financing base and higher interest rates.
He added, "International operations provide opportunities for diversification and growth, as they contribute 39% of total income. New loans witnessed a record rise in individual financing, and new corporate loans grew by 50 billion dirhams, supported by the thriving regional economic situation and the group's digital transformation program."
Dubai's economy... strong growth
In the same context, Group Chief Executive Officer Shane Nelson said: “Liquidity in the UAE banking sector is still in a good position, and current and savings account balances grew by 20 billion dirhams during 2022, which enabled the group to benefit from higher interest rates.”
He added, "Dubai's economy is expected to achieve strong growth in 2023, and the group's strong balance sheet today is in a position to support its customers and help them grow locally and internationally."
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