Emirates NBD 2023 profit rises 65% to $5.9bn

Reuters/Satish Kumar

Emirates NBD, the biggest bank by assets in Dubai, said net profit rose 65 percent in 2023 thanks to asset growth, a stable low-cost funding base, and higher transaction volumes boosting overall income.

Earnings jumped to AED21.5 billion ($5.85 billion) from AED13 billion a year ago.

Total income rose 32 percent to AED 43 billion thanks to high deposit mix, solid loan growth and strong fee and commission growth across all business segments.

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Total assets grew 16 percent to AED863 billion. The deposit franchise rose AED 82 billion, with low-cost current and savings accounts reaching AED 30 billion.

Credit quality improved significantly, with impairment charges down 33 percent and the impaired loan ratio improving to 4.6 percent, the lowest level since 2009.

“We used its strong balance sheet to support economic growth in the UAE, providing over AED70 billion of new corporate lending, and a significant increase in lending to Small and Medium Enterprises,” Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Emirates NBD, said in a statement.

Group CEO Shayne Nelson said that the bank’s strong capital base enabled the balance sheet to grow 16 percent to AED863 billion last year, with international operations generating 39 percent of total income.

The bank’s board proposed a dividend of 120 fils per share, double last year’s dividend.

Emirates NBD plans to increase its branch network in Saudi Arabia from 15 to 24 by 2025. It currently has 850 branches in the UAE and overseas.