Dubai’s Largest Bank Achieves Remarkable Growth
Emirates NBD, Dubai’s largest bank, has announced a record profit of Dh21.5 billion for the year 2023, marking a significant 65% increase from the previous year. This growth has been attributed to asset expansion, a stable low-cost funding base, increased transaction volumes, and substantial recoveries of impaired loans.
Key Financial Highlights:
- The bank’s assets grew by 16%, with a notable increase in deposits and corporate lending.
- New corporate lending exceeded Dh70 billion, contributing to a robust balance sheet and solidifying Emirates NBD’s status as a regional financial powerhouse.
- The bank experienced a decrease in impairment charges and an improvement in the impaired loan ratio to 4.6%, the lowest since 2009.
- Profit in the fourth quarter alone rose to Dh4 billion, a 3% increase year-on-year.
Dividend and Shareholder Value:
In light of the stellar financial performance, the board proposed a significant dividend increase, doubling the previous year’s payout. This decision underscores the bank’s commitment to delivering value to its shareholders.
Expansion and Digital Innovation:
Emirates NBD’s expansion efforts continued with the enhancement of its international footprint, particularly in Saudi Arabia and Egypt. The bank’s digital capabilities have also been a focus area, driving further growth and customer engagement.
Leadership Commentary:
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD, expressed pride in the bank’s achievements and its support for economic growth in the UAE. He emphasized the bank’s role as a leading financial institution and its commitment to sustainability initiatives.
Conclusion:
Emirates NBD’s record profits in 2023 reflect a thriving regional economy and the success of its diversified business model. The bank’s strategic growth and commitment to innovation position it well for continued success in the future.
