Once again, Emirates NBD walks away with the award for the Middle East’s best bank. The Dubai bank posted net profit of $3.54 billion in the full year 2022, up 40% year on year, boosted by strong returns from investment banking, treasury sales income and trade finance. It has continued that strong performance in the current year, posting a first-quarter 2023 profit of $1.63 billion, bolstered by net interest income of $1.96 billion, up 69% year on year.
The bank’s success lies in its resilience, reach and diversified business model. It is a powerhouse in its home market, accounting for 19% of all banking deposits in the UAE at the end of 2022, as well as 17% of assets and 22% of total loans. It posted a return on tangible equity in 2022 of 17.1%, up from 12.8% a year earlier, with a net interest margin up from 2.53% to 3.43% and return on assets of 1.8% in 2022, versus 1.3% in 2021.
It is also a growing power in regional capital markets, completing six equity capital markets transactions worth $1.48 billion and 22 debt capital markets sales worth $2.1 billion during the awards period. It was, as ever, a leader in loans. It was a bookrunner on 25 loans worth $11.3 billion in the 12 months to the end of March 2023 and was a mandated lead arranger on 31 loans worth a total of $10.6 billion.
The bank was a co-manager on the initial public offering of Dubai’s main power and water company, Dewa, which raised $6.1 billion in April 2022, making it the largest IPO in Europe, Middle East and Africa since the start of the pandemic. Emirates NBD also co-arranged the $1 billion-plus initial stock sale of Dubai toll road operator Salik, a deal that drew more than $50 billion in orders, underscoring the strong demand for Middle Eastern listings. Its corporate and institutional banking division posted a 5% jump in net profit in 2022, with global markets and treasury posting a profit of $408 million thanks to higher investment income.
Business was up across the board in a region finally coming into its own as sovereigns look to diversify economies, create jobs, promote deeper capital markets and foster new trade routes with key markets, particularly in Asia.
The bank has delivered not just a record financial performance but also a number of significant milestone innovations within the region
Shayne Nelson
Emirates NBD led the way. Its retail banking and wealth management business saw card spend rise 31% year on year in 2022, with credit card acquisitions up 100% and loan origination up 39%. Emirates Islamic, which offers Shariah-compliant services, including personal, business and corporate banking, posted a record net profit of $340 million on higher funded and non-funded income. Priority banking posted a 24% jump in revenues in 2022, with private banking and wealth management achieving double-digit profit and revenue growth, driven by new client acquisitions.
Its longstanding investment in digital continues to bear fruit. An upgraded version of its mobile app, ENBD X, was unveiled in December 2022, with full digital onboarding for new customers, fixed deposit account opening and IPO subscriptions. Its lifestyle digital bank, Liv, continues to expand its reach, with 500,000 customers at the end of 2022. Last year, Emirates NBD unveiled Liv Young, a service that targets customers in the eight to 18-year age range.
Group chief executive Shayne Nelson says it was “yet another proud moment for Emirates NBD, following our record financial performance over the last year. It reinforces our position as industry leaders, underpinned by our commitment to innovation, financial excellence and, above all, our customers. Looking forward, we are now very well positioned to continue enabling our customers’ success, especially by offering them the best digital banking solutions.
“In doing so, we will also carry forward Emirates NBD’s proud legacy of supporting Dubai’s remarkable growth and innovation story, and that of our nation, too, just like we have over the last 60 years.”
