Emirates NBD Hyperinflation and Financial Performance Review
Emirates NBD's profit rise 130% YoY to record AED 12.3 bn
on strong diversified income growth and healthy recoveries
Income Statement
Net interest income
Key Highlights
Group profit up 130% on strong diversified income
growth and healthy recoveries
- ENBD income higher from improving deposit and loan
mix, increased margins and higher transaction volumes
– DeinzBank non-funded income higher in H1-23 from
higher transaction volumes and increased contribution
from DenizBank hedges and swaps
H1-23
H1-22
%A YOY
Q2-23
%A YOY %A QOQ
(All figures are in AED bn)
14.4
9.4
53%
7.2
41%
1%
•
Non-funded income
6.9
4.8
44%
3.6
35%
10%
Total income
21.3
14.2
50%
10.8
39%
3%
Operating expenses
(5.5)
(4.1)
34%
(2.8)
36%
7%
Operating profit
15.8
10.1
56%
8.0
40%
2%
-
before impairment
Impairment allowances
(0.9)
(1.9)
(50)%
(0.5)
4%
1%
Profit before tax & others
14.9
8.3
80%
7.5
43%
2%
•
Hyperinflation adjustment
(1.4)
(1.9)
(28)%
(0.5)
(49)%
(37)%
•
Tax
(1.3)
(1.1)
19%
(0.8)
5%
56%
Profit
12.3
5.3
130%
6.2
78%
4%
Cost: income ratio
25.6%
28.7%
(3.1)%
26.0%
(0.7)%
0.7%
NIM
3.96%
2.86%
110bps
3.87%
78 bps
(18) bps
•
•
•
Balance Sheet
30-Jun-23 31-Dec-22
%A YTD
31-Mar-23
%A QOQ
Total Assets
811
742
9%
782
4%
Total Gross Loans
479
456
5%
470
2%
•
Deposits
556
503
11%
538
3%
CET-1 (%)
16.6%
15.4%
1.2%
15.8%
0.8%
LCR (%)
217%
182%
34%
187%
29%
NPL ratio (%)
5.6%
6.0%
(0.4)%
5.6%
0%
Higher NIMs reflect improving loan and deposit mix and
higher interest rates
Lower provisions as 41 bp cost of risk for H1-23 reflects
strong recoveries and robust operating environment
Balance sheet surpasses AED 800 bn for first time ever
AED 37 bn further CASA growth demonstrates market
leading deposit franchise
Record half-year for Retail disbursements and strong
new Corporate lending across region helping deliver loan.
growth, leading to guidance revised upwards
AED 1.9 bn profit contribution from DenizBank despite
challenging operating environment
Higher income enables accelerated investment in AI and
international expansion propelling future business growth
18
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