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Emirates NBD, Dubai’s biggest lender, reported a net profit of 6.2 billion dirhams ($1.69 billion) in the second quarter of 2023, up 77% from AED 3.5 billion in the same period last year.
The bank’s net profit surged 130% to a record AED 12.3 billion in the first half of 2023 on strong current and savings accounts growth, coupled with a healthy increase in lending.
The profit increase was driven by higher margins, growing non-funded income and a lower cost of risk on significant recoveries.
Emirates NBD added AED 53 billion in deposits in H1, including AED 37 billion in low-cost current and savings accounts.
Higher retail and corporate lending drove 5% loan growth, with guidance revised positively upwards, the bank said in a statement to Dubai Financial Market on Thursday.
Patrick Sullivan, Group Chief Financial Officer, Emirates NBD, said: “All business units generated a substantial increase in income, helping deliver its strongest ever half-year for both income and profit.”
The group’s success in growing an inexpensive and diversified funding base has positioned the bank to continue benefiting from higher interest rates, he added.
Emirates NBD revised its loan growth guidance positively upwards after reporting a strong lending growth of 5% in the first half of 2023, Sullivan said.
(Editing by Brinda Darasha)
