Emirates NBD’s H1 profit jumps by 130% to Dhs12.3bn

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Emirates NBD, Dubai’s biggest bank by assets, reported its second-quarter earnings for 2023. The lender has reported a net profit as net interest income surged amid continued economic momentum in the country.

The bank, in a statement published with the Dubai Financial Market, called its second-quarter earnings a “record” with income growing to Dhs10.8bn and profit rising to Dhs6.2bn ($1.69bn) from the same period a year earlier.

The growth in profits reflects higher margins, growing non-funded income, and a lower cost of risk on significant recoveries, said Emirates NBD.

It credited its earnings to its deposit franchise which added Dhs53bn of deposits including Dhs37bn of low-cost Current and Savings Accounts.

The bank said its profits for the first half of the year are now at 130 per cent at Dhs12.3bn. This again was credited to strong Current and Savings Accounts growth coupled with a healthy increase in lending.

The lender noted that its investment in technology and Artificial Intelligence enabled the launch of new digital products and services which is driving business growth.

Emirates NBD Q2 report highlights

• Total income up 50 per cent to Dhs21.3bn on deposit mix with higher interest rates feeding through to margins and growth across all business segments and products
• Loans grew up by 5 per cent in H1 2023 with retail lending and corporate closing key deals across the region leading to guidance revised positively upwards
• Net interest margin rose significantly by 110 basis points y-o-y to 3.96 per cent
• Impairment allowances substantially down 50 per cent y-o-y as credit quality improved, reflecting the bank’s approach to credit provisions
• Balance sheet surpassed Dhs800bn milestone for the first time ever

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