worth AED 81 billion with a year-on-year growth of 28%

Interest income at 17 national banks to an all-time high in 2022

Emirates NBD ranked first in terms of interest income at AED 23.2 billion. Cinematographer: Ahmed Arditi

Last year, 17 national banks listed on the capital markets collected AED 81 billion and 71 million in net interest income and Islamic financing, with an annual growth of 28%, according to a monitoring conducted by Emirates Today, based on the financial statements announced for these banks for the year 2022, compared to AED 63 billion and 276 million during 2021.

This is the largest ever proceeds in the history of these banks for net interest income and Islamic finance.

In terms of value, Emirates NBD ranked first with AED 23.2 billion, followed by First Abu Dhabi Bank with AED 14.4 billion and Dubai Islamic Bank third with AED 11.7 billion.

For the fastest growing year-on-year in net interest income, Mashreq came first with a growth of 50%, followed by Bank of um Al Quwain with 43.7%, and Emirates NBD with 37%.

According to the monitoring, 14 banks achieved double-digit growth, two banks recorded a single-digit growth rate, and one bank recorded a decline in Islamic finance revenues, Ajman Bank.

Over the past year, the central bank, and behind it the banks, raised interest rates six times, following in the footsteps of a similar hike by the US Federal Reserve due to the policy of pegging the dirham to the dollar, which reflected positively on banks' interest income.

The banking expert, Awatif Al-Harmoodi, told "Emirates Today" that "the raising of the main interest rate by the Central Bank raised the rate of (EIBOR), and therefore the interest was raised on all loans associated with it, such as real estate loans, which are usually long-term, and even new loans and financing, the high rate was applied to them, which reflected on (the proceeds) positively."

Al-Harmoodi added that Ā«there is also a growth in the demand for financing, after the end of the Corona pandemic and the return of all economic activities to levels above the pre-pandemic, in addition to the fact that interest income constitutes the largest share of banks' operating revenues, and despite the competition between them in attracting customers and submitting offers, but raising the main interest rate made there a convergence in financing prices and banks enjoyed historical levels in their earningsĀ».