Emirates NBD Achieves Remarkable 130% Profit Surge in H1 2023

Emirates NBD had a fantastic performance in H1 2023, with a remarkable 130% increase in profit. Their deposit franchise was highly successful, adding AED 53 billion in deposits, including AED 37 billion from low-cost Current and Savings Accounts. The bank also saw significant growth in Retail Lending and Corporate Lending, resulting in a 5% increase in loans, and they have raised their financial outlook positively.

Emirates NBD‘s focus on technology and AI paid off as they swiftly launched new digital products and services, contributing to their overall business growth. Their strong financial position has solidified their reputation as a leading bank in the Middle East and the UAE, earning them prestigious accolades at the Euromoney Excellence Awards 2023. All business units performed exceptionally well, delivering higher income and profit during this period of growth.

Major Highlights – First Half 2023

Emirates NBD has achieved an impressive 130% growth in profits, driven by higher margins, an improved deposit and loan mix, and substantial recoveries. Their total income surged by 50% to AED 21.3 billion, boosted by an excellent deposit mix with higher interest rates, leading to strong growth across all business segments and products.

One of the bank’s key strengths lies in its deposit mix, with deposits growing by AED 53 billion in H1-23, including AED 37 billion from low-cost Current and Savings Accounts. Additionally, loans saw an impressive 5% growth in H1-23, with record Retail lending and successful Corporate deals across the region, resulting in an upward revision of their guidance.

Emirates NBD’s net interest margin also saw a significant rise of 110 basis points year-on-year, reaching 3.96%. Moreover, their prudent approach to credit provisions contributed to a substantial 50% decrease in impairment allowances year-on-year, reflecting improved credit quality.

The bank’s Balance Sheet has achieved a significant milestone, surpassing the AED 800 billion mark for the first time ever. Earnings per share increased significantly by 138% to 190 fils, while underlying earnings per share rose by 92% to 211 fils.

Hesham Abdulla Al Qassim, the Vice Chairman and Managing Director of Emirates NBD, expressed his delight as the bank achieved a record-breaking profit of AED 12.3 billion in the first half of 2023. This outstanding performance reflects the Group’s expanding regional presence and strategic investments in technology and AI, driving innovation in product delivery and propelling overall growth.

Emirates NBD is also celebrating its 60th anniversary, and over the years, it has grown to become one of the leading banks in the region, serving more than 20 million customers across 13 countries. As a responsible corporate citizen, the bank is committed to playing a pivotal role in driving economic growth and development throughout the region.

In alignment with the UAE’s commitment to sustainability, Emirates NBD is excited to welcome COP28 to the country and is proud to offer exciting Environmental, Social, and Governance (ESG) solutions to its customers. These solutions empower them to meet their net-zero ambitions and sustainability goals, contributing to a greener and more sustainable future.

The bank’s dedication to excellence and commitment to customer satisfaction has not gone unnoticed, as Emirates NBD was honored with prestigious recognitions at the Euromoney Excellence Awards 2023, being named the ‘Best Bank in the Middle East’ and the ‘Best Bank in the UAE’. This recognition further solidifies Emirates NBD’s position as a leading and trusted financial institution in the region.

Operating Performance

Emirates NBD achieved remarkable results in H1-23, with total income up 50% year-on-year and 3% quarter-on-quarter to AED 21.3 billion. The bank’s net interest income witnessed an impressive 53% year-on-year growth, driven by an excellent deposit mix and higher interest rates. Non-funded income also surged by 44% year-on-year, attributed to increased card transactions and FX & Derivative income.

Expenses remained well controlled, with the cost-to-income ratio within guidance at 25.6%, reflecting stronger income and enabling accelerated investment in AI and international growth. Notably, impairment allowances substantially decreased by 50% year-on-year due to strong recoveries and a healthy operating environment.

Emirates NBD achieved its highest-ever quarterly profit of AED 6.2 billion, reaffirming its position as a leading bank in the UAE. These outstanding results demonstrate the bank’s commitment to excellence and financial prudence.

Balance Sheet Trends

In H1-23, lending increased by AED 23 billion, with the retail franchise experiencing its strongest half-year ever for acquiring loans. Deposits grew by AED 53 billion, including a significant AED 37 billion increase in Current and Savings Account balances, contributing to a stable and efficient funding base.

Liquidity remains robust, with the Liquidity Coverage Ratio at 217% and the Advances to Deposits Ratio at 79%.

The Non-Performing Loan ratio improved to 5.6% during the half-year, driven by substantial writebacks and recoveries. The Coverage ratio strengthened to 147%, reflecting the Group’s successful approach to loan management and prudent credit risk management.

As of 30 June 2023, the Group’s Common Equity Tier 1 ratio stands at 16.6%, Tier 1 ratio at 18.4%, and Capital Adequacy ratio at 19.5%. These strong capital ratios underscore the Group’s financial strength and stability.


GCC economies have demonstrated resilience in the face of a challenging global environment and higher interest rates. The PMI surveys reveal strong activity in non-oil sectors throughout the first half of 2023 across the region.

Emirates NBD Research has updated its growth forecast for the UAE in 2023, now projecting a growth rate of 2.9% instead of 3.2%. This adjustment is due to an expected contraction in hydrocarbon GDP. However, there is positive news as the forecast for UAE non-oil GDP growth has been revised upward to 5.0% for this year, up from the previous estimate of 3.5%.

The UAE’s national energy strategy has ambitious plans to triple the contribution of renewable energy by 2030, leading to potential investments of up to AED 200 billion. In addition, the tourism sector is experiencing a strong recovery, with Dubai’s tourist numbers approaching pre-pandemic levels.

In the wider MENAT region, Egypt has successfully undertaken asset sales as part of its efforts to revamp the economy. Meanwhile, Türkiye has increased interest rates to combat inflation, signaling its commitment to addressing economic challenges.

Despite the uncertainties, the GCC and MENAT regions are showing signs of economic progress and resilience, with various sectors making positive strides toward sustainable growth.

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