Emirates NBDs 2022 profit rises 40 to AED 13 billion

Emirates NBD’s 2022 profit rises 40% to AED 13 billion

10 Min | 26 January 2023
Emirates NBD’s 2022 profit rises 40% to AED 13 billion
Strong results support 20% increase in proposed dividend to 60 fils

Dubai, 26 January 2023: Emirates NBD’s profits jumped 40% to AED 13 billion in 2022, demonstrating the resilience of the Group’s diversified business model and strong regional economic growth. Q4 profit was exceptionally strong at AED 3.9 billion, up 94% y-o-y, reflecting improving margins and a lower cost of risk. 2022 was a record year for retail lending and customer transactions, with all business units delivering an outstanding performance, driving income 36% higher. New corporate lending grew by AED 50 billion in 2022 reflecting continued business optimism and AED 20 billion further Current and Savings Account growth improved the deposit mix, helped by strong sector liquidity. Credit quality remains healthy reflecting the region’s strong economy with impairment charge down 12%. We have opened new branches in KSA, Egypt and India, accelerating investment in our international footprint and digital capabilities to support further growth.

Emirates NBD Q4 2022 Key Highlights

Key Highlights – FY 2022

  • 40% growth in profit on improving margins, record demand for retail financing and AED 50 billion of new corporate lending, AED 20 billion growth in Current and Savings Accounts and a substantially lower cost of risk

    • Net profit of AED 13.0 billion up by an outstanding 40% y-o-y
    • Total income up 36% to AED 32.5 billion on our excellent deposit mix with higher interest rates feeding through to margins and strong growth across all business segment and products
    • Net interest margin rose significantly to 3.43% and 2023 guidance set even higher on rising interest rates
    • Customer loans: record Retail and Islamic financing coupled with AED 50 billion of new corporate lending offset Sovereign repayments
    • Deposit mix: Current and Savings Accounts grew an impressive AED 20 billion in 2022 demonstrating our market penetration coupled with strong UAE liquidity, enabling the Group to benefit from interest rates rises
    • Earnings per share up significantly by 43% to 198 fils, underlying up 79%
    • Proposed Dividend substantially increased by 20% to 60 fils per share
  • Emirates NBD’s strength empowers its customers to benefit from a growing economy

    • Total assets up 8% at AED 742 billion
    • IPOs: Lead role in delivery of over AED 31 billion IPOs supporting growth in Dubai economy, with end-to-end IPO subscription website offering real-time on-boarding through state-of-the-art fully digital platform
    • Expenses well controlled, as the Group opens further branches in KSA, India and Egypt and accelerates investment in Digital and Data to drive future growth
    • Credit quality improved with NPL ratio 0.3% lower at 6.0% in 2022 on healthy writebacks and recoveries as regional economies remain robust. Coverage ratio very strong at 145%
    • Impairment allowances substantially down 12% y-o-y reflecting robust provisioning actions in earlier periods
    • Capital and Liquidity 182% Liquidity Coverage Ratio and 15.4% Common Equity Tier-1 ratio reflect the Group’s solid balance sheet, used to empower customers and create opportunities to prosper
    • DenizBank syndicated loan successful roll over in November 2022 with highest rollover ratio of any Turkish bank
  • Emirates NBD market leadership continues to advance

    • 30% market share: Emirates NBD and Emirates Islamic have around a 30% market share of UAE Debit and Credit Card spend, processing over 1 million transactions per day
    • ‘ENBD X’ enhanced mobile banking app rolled out, delivering a new standard in customer service
    • 100% Cloud Native IT Architecture in place for the Digital Age supporting growth and efficiency
    • Digital: 97% of all sales and servicing transactions now fully STP automated
    • Liv. becomes first neo-bank in the UAE to offer digital IPO subscription platform to customers
    • Emirates NBD Pay: launched to offer merchant acquiring services to institutional clients and provide loans against POS receivables
    • International revenue diversifies income, representing 39% of total revenue with further branches opened in KSA, Egypt and India
    • Talent
      • Emirates NBD leads the way on Emiratisation by significantly investing in upskilling, re-skilling and developing Emiratis though international training and development programs.
      • Successful long-term succession planning has led to 70% of UAE Group Executive Committee now Emiratis.
    • ESG appointed a Group Head of ESG reporting directly to Group CEO, demonstrating our commitment of further advancing important Environmental, Social and Governance initiatives
    • Social contributions more than doubled to AED 116 million in 2022

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said:

His Highness Sheikh Ahmed Bin Saeed Al Maktoum

  • “Emirates NBD’s profits jumped 40% to AED 13 billion in 2022, reflecting strong regional economic growth and the success of the Group’s diversified business model.
  • As a leading bank in the region, we are proud to support the ‘D33’ Dubai Economic Agenda which aims to double the size of the Emirate’s economy in 10 years and make Dubai one of the top three international destinations for tourism and business.
  • Emirates NBD played a lead role in delivering over AED 31 billion of IPOs in 2022, growing the Dubai economy and developing the equity capital markets
  • Our focus on long term succession planning has led to talented Emiratis moving into Senior roles and I am extremely proud that 70% of our Group Executive Committee in the UAE are Emiratis.
  • In light of the Group’s strong performance, we are proposing a 20% increase in the cash dividend to 60 fils per share.”

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said:

Hesham Abdulla Al Qassim,

  • “Emirates NBD delivered record income and operating profit in 2022 as total income grew 36% to AED 32.5 billion on increased transaction volumes and improved margins from an efficient funding base and higher interest rates.
  • International operations provide diversification and growth opportunities, contributing 39% of total income.
  • New lending increased substantially with record growth in retail financing and AED 50 billion of new corporate lending, helped by a buoyant regional economy and our digital transformation.
  • Earlier this month we became the first bank to issue a public Dirham-bond following the UAE Federal Government’s establishment of a dirham yield curve, reinforcing our national identity.
  • The Group expanded its international economic links with further branches opened in the Kingdom of Saudi Arabia, India and Egypt.”

Shayne Nelson, Group Chief Executive Officer said:

  • “We maintained strong income growth momentum, kept a firm control of costs and benefited from writebacks and recoveries, reflecting a healthy regional economy.
  • Profit of AED 3.9 billion in Q4-22 increased 94% reflecting improving margins and a lower cost of risk.
  • Liquidity in the UAE banking sector remains healthy and we grew Current and Saving Account balances by AED 20 billion during 2022, enabling the Group to benefit from interest rates rises.
  • As Emirates NBD celebrates its 60th anniversary in 2023 we have reshaped our leadership team, including the deserved appointment of a number of Emirati executives, the appointment of a Group Head of ESG and establishing a Corporate Venture Capital Fund to take advantage of future growth opportunities
  • Dubai’s economy is forecast to deliver strong growth in 2023 and the Group’s solid balance sheet is ready to support our customers and help them grow both locally and internationally.”

Financial Review

Emirates NBD Q4 2022 Financial Review

Rounding differences may appear throughout the document.  

Operating Performance

Total income for 2022 was up 36% y-o-y to AED 32.5 billion. Net interest income was up 37% y-o-y on improved loan and deposit mix with higher rates feeding through to margins. AED 20 billion further CASA growth improved funding costs and the balance sheet is well positioned to continue benefiting from rate rises. Non-funded income was up 35% y-o-y from increased local and international card transactions, coupled with growth in FX & Derivative income.

Expenses remain well controlled and within guidance. Higher income enables accelerated investment in Digital and Data and the international network to drive future growth.

Emirates NBD Q4 2022 Operating Performance

Impairment allowances in 2022 were substantially down 12% y-o-y reflecting higher recoveries and writebacks and the improving operating environment, with 108 bps cost of risk within guidance.

Balance Sheet Trends

Lending was stable during 2022 as AED 50 billion of new Corporate loan growth, coupled with record financing for Retail, offset strong Sovereign repayments.

Emirates NBD Q4 2022 Balance Sheet

Deposit grew by AED 47 billion in 2022 with Current and Savings Accounts growing by an impressive AED 20 billion demonstrating our market penetration coupled with strong UAE liquidity, enabling the Group to benefit from interest rates.

Liquidity remains strong with the Liquidity Coverage Ratio at 182% and the Advances to Deposits Ratio at 82%.

Emirates NBD Q4 2022 Balance Sheet

During the year, the Non-Performing Loan ratio improved to 6.0% on significant writeback and recoveries whilst the Coverage ratio strengthened to 143%, demonstrating the Group’s continued prudent approach towards credit risk management.

As at 31 December 2022, the Group’s Common Equity Tier 1 ratio is 15.4%, Tier 1 ratio is 17.2% and Capital Adequacy ratio is 18.3%.

Business Performance

  • Retail Banking and Wealth Management had a remarkable 2022 with the highest ever revenue, strongest ever acquisition of loans and credit cards, and a record growth in CASA.

    • Strong loan growth in 2022 with Loan origination up 39%, Credit Card acquisitions up 100% and Card spends up 31% y-o-y
    • Lending increased by AED 7 billion, whilst CASA grew by AED 27 billion in 2022
    • Income up 27% with fee income growing by 34%
    • Rollout of enhanced mobile banking App ‘ENBD X’, delivering a new standard of excellence to customers
    • Enhanced credit card and personal loan application process, enabling instant credit approval
    • Successful launch of a series of Strategic Investment Funds supporting investment into UAE IPOs
    • Launched DEWA, TECOM and Salik IPO portal on the Emirates NBD website with real time direct integration with DFM for new investors
  • Corporate and Institutional Banking capitalised its strategic partnership with major Government entities and Corporates by further offering digitized service platforms

    • Took lead in delivering over AED 31 billion of IPOs, with end-to-end IPO subscription website offering real-time on-boarding through a state-of-the-art fully digital platform
    • Implemented cutting-edge new ‘businessONLINE’ platform
    • Profit is 5% higher on higher fee income due to increased equity capital market activity, trade finance and treasury sales income and lower impairment allowances
    • AED 50 billion of new lending offset substantial contractual repayments
    • Continued focus on growing CASA balances to improve funding costs by retiring expensive deposits
  • Global Markets and Treasury delivered an outstanding performance with profit surpassing the 1.5 billion dirham mark for the first time in the Group’s history.

    • Net interest income grew significantly as the balance sheet was strategically positioned to benefit from interest rate rises, coupled with a significant increase in banking book investment income.
    • Non funded income doubled as Trading delivered improved results and the Sales and Structuring team grew revenue by 55% on very strong client FX flows.
    • International Treasuries doubled their revenue contribution.
    • GM&T were one of the most active primary dealers for T-Bonds issued by Ministry of Finance.
    • GM&T upgraded its systems to support an expanded product offering and enhance customer experience through smart digitization initiatives.
  • Emirates Islamic’s net profit jumped to a record AED 1.24 billion on higher funded income and non-funded income with a significant reduction in the cost of risk reflecting the strong economic recovery.
  • DenizBank income up 50% by AED 3.5 billion and Impairment allowances AED 1.0 billion lower on strong writebacks and recoveries helping offset AED 3.1 billion hyperinflation adjustment


The outlook for the Middle East remains positive despite a weaker global backdrop. Higher oil prices in 2022 have pushed GCC budgets into surplus and strengthened sovereign balance sheets. Emirates NBD Research expect UAE GDP to grow by 3.9% in 2023, well ahead of the World Bank’s global growth forecast of 1.7%.

Inflation has started to fall in many economies with the markets anticipating that interest rates are approaching their summit.

Egypt and Turkey have seen strong services inflow and tourism revenue helping offset some of the impact from rising energy costs on the current account deficit.

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