Emirates NBD acquires majority stake

AED 17 billion profits of 12 listed banks during the first quarter

The profits of the 12 banks increased by about AED 4.46 billion during the first quarter of 2023. Archival

The net profits of 12 banks listed on the local capital markets exceeded AED 17.1 billion during the first quarter of this year, an increase of 35.3%, or AED 4.46 billion, compared to a net profit of AED 12.64 billion in the same period last year.

According to the disclosures of listed banks announced on the websites of the financial markets, Emirates NBD accounted for the largest share of the total profits, after recording a net profit of more than six billion dirhams during the first quarter of this year, an increase of 120%, compared to the same period last year, thus growing the bank's profits by more than double, after a jump in net interest income and a decline in its provisions.

Jump

First Abu Dhabi Bank (FAB), the largest bank in the UAE by assets, recorded a 70% jump in net profit for the first quarter of 2023 to AED 3.9 billion, compared to the same period in 2022, after excluding profits from the sale of a stake in Magnati in the first quarter of 2022, supported by a strong rise in net interest income, as well as continued momentum across all sectors.

ADCB's net profit increased by 27% to AED 1.878 billion at the end of the first quarter of this year, compared to AED 1.483 billion in the first quarter of last year.

Mashreq Bank recorded an increase in net profit by 153.97% to AED 1.6 billion in the first quarter of this year, compared to AED 630 million in the same period of 2022.

Islamic Banks

DIB's net profit grew by 12% to AED 1.506 billion at the end of the first quarter of this year, compared to AED 1.345 billion in the first quarter of last year, amid higher core revenues and prudent cost management. ADIB recorded a 54% growth in net profit in the first quarter of 2023 to AED 1.1 billion compared to AED 715 million in the same period in 2022, indicating a steady trend of strong growth and profitability.

Emirates Islamic Bank recorded a net profit of AED 601 million for the first three months of this year, a growth of 76%, compared to AED 342 million in the same period last year.

Sharjah Islamic Bank recorded an increase in net profit by 24.6% to AED 233.07 million in the first quarter of this year, compared to AED 187 million in the first quarter of 2022, while operating profit increased by 31.9% to AED 327.7 million.

Strong growth

RAKBANK also posted a profit of AED 450.3 million in the first quarter of this year, up 105%, driven by strong and diversified growth on both sides of the balance sheet, strong sales momentum and lower cost of funds.

National Bank of Fujairah recorded a year-on-year growth of 151.8% to end the first three months of 2023, with a net profit of AED 152 million, compared to AED 60.4 million in the same period in 2022.

NBQ's net profit increased to AED 139 million during the first quarter of this year, an increase of 44%, compared to AED 96 million in the first quarter of 2022, as a result of the improved external environment and efficient cost management.

United Arab Bank's net profit increased to AED 54.8 million in the first quarter of 2023, compared to AED 30.4 million in the same period last year, an increase of 80.2%.

Origins

The assets of 12 listed banks increased to about AED 3.34 trillion by the end of the first quarter of this year, reflecting the strength of their solvency, benefiting from the recovery of the national economy, despite the challenges witnessed by the global banking sector.

Based on the disclosures of listed banks announced on the financial markets websites, the banks' assets during the period from January to March 2023 grew on a quarterly basis by 4.21%, or the equivalent of AED 134.9 billion, compared to AED 3.204 trillion at the end of December 2022.

• 35.3% increase in profits of the 12 listed banks during the first three months of 2023.