Emirates NBD continues banks’ record earnings trend with record profits in 2023

Emirates NBD’s net income rose 65% y-o-y to AED 21.5 bn in 2023, according to an earnings release (pdf). Revenues stood at AED 43 bn in 2023, up 32% y-o-y. On a 4Q basis, the lender’s net income inched up 3% y-o-y to AED 4 bn. The surge is attributed to “asset growth, a stable low-cost funding base, increased transaction volumes and substantial impaired loan recoveries,” according to the release.

Breakdown: The bank achieved its highest annual funded and non-funded income, with an asset growth of 16% y-o-y to AED 863 bn and a healthy deposit mix seeing AED 82 bn in growth. The profitability of the corporate and institutional banking segment doubled, with corporate lending witnessing an 18% y-o-y increase. Global markets and treasury also reported a doubled net income of AED 3.4 bn, driven by “favorable balance sheet positioning and higher banking book investment income,”

Looking ahead: Emirates NBD currently operates 15 branches in Saudi Arabia and aims to expand to 24 branches by 2025, according to the statement.

Dividend: The board is suggesting a dividend of 100 fils, along with an additional 20 fils in celebration of the bank’s 60th anniversary, doubling the dividend from the previous year.

ALSO-The bank’s Islamic finance arm also saw bumper earnings during the year:Dubai-based Emirates Islamic saw its bottom line grow 71% y-o-y to a record AED 2.12 bn in 2023, driven by an increase in both funded and non-funded income, according to an earnings release (pdf). Emirates Islamic’s total income also rose50% y-o-y to AED 4.8 bn, driven by financing expansions and increased transactions.

Solid liquidity + deposit growth: Emirates Islamic saw its total assets increase 18% y-o-y to AED 88 bn, while deposits grew 9% y-o-y to AED 61.3 bn. Current and savings account balances accounted for 76% of total deposits, the bank said.

Sukoon Ins.’ net income fell 0.74% y-o-y to AED 257.4 mn in 2023, according to the company’s preliminary financial results. The company’s ins. revenues rose 19.9% to AED 4.6 bn during the year.