Emirates NBD has reported an 18% year-on-year (YoY) increase in net profit for the first quarter (Q1) of 2022, according to a press release published on the bank’s website on April 21st.
Net profit amounted to AED 2.7 billion in Q1 2022, compared to a profit of AED 2.3 billion in the same quarter of 2021.
Total income rose by 3% to AED 6.4 billion in the three-month period ended March 31st from AED 6.2 billion in the corresponding quarter last year.
“International operations contributed 37% of total income in Q1 2022 and DenizBank’s profitability was stable despite the depreciation in Turkish Lira,” CEO of Emirates NBD Shayne Nelson said.
Operating profit stood at AED 3.0 billion in Q1 2022, growing by 19% from AED 2.5 billion in Q1 2021.
Loans increased by 1% during the first three months of 2022, while the deposits mix improved in the same period.
“Net interest income grew by 4% YoY on an improved loan and deposit mix. CASA grew by a record AED 18 billion in Q1 2022 and the improved funding mix positions us very well for rising interest rates expected throughout 2022,” Group CFO Patrick Sullivan noted.
The bank’s total assets slightly fell to AED 694.0 billion as of March 31st from AED 695.1 billion at the end of March 31st 2021.
Regarding the outlook for 2022, Emirates NBD Research expects the UAE’s real gross domestic product (GDP) to grow by 5.7% from 3.8% in 2021, backed by higher oil production.
Moreover, Saudi Arabia’s economic growth is expected to hit 7.7% in 2022 from 3.2% in 2021.
Higher costs of food and energy imports and inflationary pressures amid the ongoing Russian-Ukrainian war are likely to weigh on Egypt and Turkey in 2022, increasing their current account deficits, according to the bank’s research.
Emirates NBD is a government-owned bank based in Dubai and is one of the largest banking groups in the Middle East in terms of assets.
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