Emirates NBD
UAE banking sector seems to have pulled off further gains in the first quarter 2022. Emirates NBD sure has done so. Image Credit: Gulf News Archive

Dubai: Dubai’s biggest bank, Emirates NBD has recorded its highest quarterly profit since 2019, notching up Dh2.7 billion for the first three months of 2022. The gains were led by record lending, deposit growth and customer transactions.

The profits, up 18 per cent year-on-year, build on the ‘economic recovery momentum from 2021’, the bank said. "We delivered loan growth in the first quarter reflecting the more optimistic economic outlook," said Shayne Nelson, Group CEO. "These strong results, along with the positive outlook for margins, enable us to invest in our international network and digital capabilities, supporting our next stage of growth."

In particular, the bank will be hoping to maintain – even increase – on the loan growth clocked during the first quarter.

We delivered loan growth reflecting the more optimistic economic outlook,” the CEO said. “We have increased margin guidance in light of rising interest rates.

- Shayne Nelson, Group CEO

Emirates NBD’s total income for the quarter was at Dh6.4 billion, a gain of 3 per cent from a year ago. On a quarter-on-quarter basis, the number shows a 2 per cent decline. Provisions at the end of March was Dh1.4 billion, down 20 per cent from same time last year and a steep 36 per cent from the fourth quarter 2021.

Net interest income grew 4 per cent year-on-year on the improved loan and deposit mix, while the CASA (current account savings account) grew a ‘record Dh18 billion’ in the first quarter.

Emirates NBD is proud of its leading role in the DEWA IPO, delivering customers a fully digital platform from on-boarding and subscription through to payment

- Hesham Abdulla Al Qassim, Vice-Chairman and Managing Director of Emirates NBD

Take on rate hikes

Emirates NBD said its latest numbers and fundamentals place it in a position to take on upcoming rate hikes, with the US federal Reserve likely to set off the next one as early as next month. Plus, it will “continue to invest in its international and digital capabilities to support further growth.”

International operations contributed 37 per cent of total income in the first three months, with the Emirates NBD subsidiary DenizBank’s profitability rated ‘stable’ despite the depreciation in Turkish Lira.

Emirates Islamic Bank’s Q1-22 net profit at Dh342m, provisions drop 72%
Dubai’s Emirates Islamic Bank delivered a 14 per cent increase in total income to Dh652 million for the first quarter of 2022, which was enough to deliver a robust 62 per cent increase in net profit to Dh342 million. Provisions, in a major boost to the bottom line, were down 72 per cent to Dh30 million.

Customer financing during the period was up 6 per cent to Dh45.2 billion. “Emirates Islamic’s balance sheet remains strong with total assets growing by 8 per cent during Q1-2022 to Dh70.1 billion, demonstrating the strength of our operating capabilities and prudent risk management,” said Salah Mohammed Amin, CEO. “We kept investing as we look to expand our reach and footprint. We will continue to play a pioneering role in the Islamic banking sector, helping further increase the uptake of Islamic banking products in the UAE.”

The asset base ‘remained robust’ at Dh70.1 billion, an increase of 8 per cent by end 2021.
Sharjah Islamic Bank reports solid net profit of Dh187m for Q1-22
The Sharjah Islamic Bank recorded a solid 13.9 per cent increase in first quarter 2022 net profit, at Dh187 million from Dh164.2 million.

Net impairment provisions came in higher at Dh61.5 million, from Dh48 million, which is a 28 per cent increase year-on-year. The “overall revenue increase are a result of UAE economic rebound amid inflationary pressures world over; bank’s focused customer-centric approach and multiple new high-profit oriented customer products,” the bank said in a statement.

The bank maintained strong liquidity, which amounted to Dh12.3 billion, at 22.4 per cent of total assets, compared to Dh14.3 billion, or 26.1 per cent by end 2021.