Stock - Emirates NBD
Emirates NBD's net profit growth for the first quarter comes to a substantial 119 per cent. UAE banks definitely has had a good time of it in year-to-date. Image Credit: Nivetha Dayanand/Gulf News

Dubai: Emirates NBD’s first quarter net profit has hit an even Dh6 billion from a staggering 119 per cent increase year-on-year. The Dubai bank has attributed this to ‘strong and diversified’ income growth and healthy recoveries. Total income came to Dh10.5 billion.

"Emirates NBD’s profits more than doubles to a record Dh6 billion in the first quarter of 2023, reflecting the success of the Group’s diversified business model and a healthy regional economy," said Hesham Abdulla Al Qassim, Vice-Chairman and Managing Director.

Along with business gains, Emirates NBD is putting a lid on costs too. Expenses are 'well controlled', as the Group 'recharges international strategy' and notching up progress in widening the international branch network. In tandem, there is also accelerated investment in digital and data for 'future growth'.

And there are positives on recoveries - 'Credit quality improved due to substantial recoveries reflecting the region’s growing economy with impairment charge down 66 per cent', the bank said.

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Another factor has been the growing regional presence, which is helping with 'significant income growth across our international footprint'.

"Higher income enables us to accelerate our international expansion and investment in digital and data, which will deliver alternative revenue streams and offset against the impact from expected future interest rate cuts," said Patrick Sullivan, Group Chief Financial Officer.

"Strong recoveries and the low cost of risk in the first quarter enables us to improve our credit quality guidance."

The exceptional increase in profit reflects higher margins, growing non-funded income and a lower cost of risk on significant recoveries

- Emirates NBD statement after hitting Dh10b in quarterly income for first time

Total assets closed out March with Dh782 billion, up by 5 per cent. Customer loans gained an 'impressive 3 per cent with highest ever retail disbursements across conventional and Islamic retail franchise coupled with strong new corporate lending', Emirates NBD said in a statement.

"Deposits grew 7 per cent - or Dh35 billion - in Q1-23, including a beneficial Dh19 billion increase in CASA, demonstrating our effective deposit gathering strategy and low cost of funds."

We have recharged our strategy within our international footprint to deliver future growth

- Shayne Nelson, Group CEO of Emirates NBD

More to follow...