Emirates NBD profit jumps 78% on interest income boost

Emirates NBD, one of the top banks in the United Arab Emirates (UAE), recorded a 78 per cent jump in its second-quarter net profit. Emirates NBD Bank, Dubai’s government-owned bank and one of the largest banking institutions in the Middle East in terms of assets, witnessed an increase in net interest income.

Dubai’s biggest lender by assets said on Thursday in a filing to the Dubai Financial Market that the net profit for the three months to the end of June climbed to record Dh6.22 billion compared to the same period last year.

Net interest income in the quarter was Dh5.9 billion. Total operating income surged by about 39 per cent. Emirates NBD Bank PJSC recorded 5 per cent loan growth in the first 6 months of the year. 

Shayne Nelson, CEO of Emirates NBD, said that the earnings were driven by “an excellent deposit mix and strong lending growth.” He further said that Emirates NBD’s focus on technology would allow the launch of new products and increase the power of generative artificial intelligence (AI) to “further transform Emirates NBD’s operations and enhance productivity.”

The economy of the UAE grew by 7.9 per cent in 2022. According to UAE Central Bank data, the UAE’s economy can expand by 3.3 per cent by the end of 2023 and 4.3 per cent in 2024. 

Non-oil gross domestic product (GDP) grew by 7.2 per cent, while oil output increased by 9.5 per cent, in 2022.

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Meanwhile, the Central Bank of the UAE (CBUAE) decided to enhance the Base Rate applicable to the Overnight Deposit Facility (ODF) by twenty five basis points. 

Wio Bank, a financial institution in Abu Dhabi, United Arab Emirates, also launched a strategic partnership to transform the banking experience for startup founders in the city.