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UAE banks see massive profits boost, NBF up 152%

UAE banks report impressive financial performances in the first quarter of 2023

UAE banks
UAE banks report impressive financial performances in the first quarter of 2023

Banks in the UAE have reported massive profit surges in the first three months of the year.

National Bank of Fujairah, National Bank of Ras Al Khaimah and Abu Dhabi Islamic Bank in the UAE all reported healthy business growth in the first quarter.

The Q1 growth reports are a sure sign of the UAE’s strong economic performance amid global uncertainty.

UAE bank profits

National Bank of Fujairah (NBF) announced year-on-year growth of 151.8 per cent to close the three-month period at a net profit of AED152m compared to AED60.4m in the corresponding period of 2022.

This demonstrates the bank’s enhanced focus on quality business, an efficient funding base and improving resilience facilitated by notable local growth despite the uncertain geopolitical conditions and global environment.

Supported by higher net interest income and net income from Islamic financing and investment activities and fee income, NBF posted an operating profit of AED397.9m for the three-month period, a rise of 35.7 per cent compared to AED293.2m in the corresponding period of 2022 and up 30.9 per cent quarter-on-quarter.

Operating income reached AED554.1m, up 34.2 per cent compared to AED412.8m in the corresponding period of 2022 and up 12 per cent compared to Q4 2022 reflecting the robust core business performance, good levels of activity and enhanced asset and liability management in a rising interest rate environment.

The National Bank of Ras Al Khaimah (RAKBANK) delivered a Net Profit increase of 105 per cent for Q1 2023 driven by a robust and diversified growth on both sides of the balance sheet.

This was underpinned by strong sales momentum and lower cost of funds in the UAE.

Total Income performance was supported by a strong net interest income of AED788.8m, up 46 per cent year-on-year. Net interest margins increased to 4.9 per cent against 3.8 per cent the year before and continues to be among the highest in the industry.

Q1 2023 non-interest income of AED284.4m, up 52.5 per cent year-on-year. The growth in non-interest income was driven by higher forex and derivative income.

Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 54 per cent for the first quarter of 2023 to AED1.1bn from AED715m in Q1 2022, underpinned by healthy business growth and higher margins.

Revenue for Q1 2023 improved by 45 per cent to AED2bn compared to AED1.4bn in the corresponding period of last year.

This was driven by 81 per cent growth in funded income to AED1.4bn, achieved from the growth in customer financing and higher margins.

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