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Emirates NBD, Dubai’s biggest lender, reported a Q4 2023 net profit of 4 billion UAE dirhams ($1.09 billion), up 3% year-on-year.
For FY 2023, the lender reported a net profit of AED21.5 billion, up 65% from AED13 billion in the same period last year.
The surge in net profit was delivered on the back of 'a stable low-cost funding base, increased transaction volumes and substantial recoveries', the bank said in a statement to Dubai Financial Market on Thursday.
The Q4 net profit came in below analysts’ mean estimate of AED5.6 billion, according to LSEG data, while FY profit was in line at AED21.82 billion.
Impairment allowances were down 33% y-o-y due to strong recoveries achieved through the year with impaired loan ratio improving to 4.6%, the bank said.
Net interest margin (NIM) rose 52 basis points in 2023 to 3.95% on favourable loan and deposit mix and higher interest rates.
Total income jumped 32% to AED43 billion on "excellent deposit mix, solid loan growth and strong fee and commission growth across all business segments."
Emirates NBD saw its asset base jump 16% in 2023 to AED863 billion, on the basis of “strong capital”.
The bank, which is celebrating its 60th anniversary, proposed a 100 fils dividend plus 20 fils, doubling last year’s dividend.
(Reporting by Brinda Darasha; editing by Bindu Rai)
