For immediate release
Emirates NBD’s H1 2022 profit rises 11% to AED 5.3 billion
Record half for Retail lending and customer transactions
Dubai, 28 July 2022
Emirates NBD delivered its highest first-half profit since 2019. Q2 profit was exceptionally strong at AED
3.5 billion, up 42% y-o-y. Another record half-year for retail lending and customer transactions together
with improving margins drove income up 23% y-o-y. Credit quality across the Group’s footprint continues
to improve with impairment down 28%. These results build on the economic recovery momentum from
2021. With its strong profitability and balance sheet the Group’s short and long-term Moody’s ratings have
been upgraded. We are extremely well positioned for rising interest rates and will continue to invest in our
international and digital capabilities to support further growth. Emirates NBD is proud to have played a
leading role in the DEWA and TECOM IPOs, delivering customers a fully digital platform from on-boarding
and subscription through to payment.
Key Highlights – First Half 2022
➢ Increase in operating performance as loan and deposit mix improved on continued record
demand for retail financing, an efficient funding base and a substantially lower cost of risk
• Total income up 23% y-o-y to AED 14.2 billion on improved loan mix and cheaper deposits with
higher interest rates feeding through to margins
• Net interest margin guidance raised by 50bps due to higher interest rates and improving margins
in DenizBank
• Expenses well controlled, with high income enabling the Group to accelerate investment in
Advanced Analytics and international network to drive future growth
• Impairment allowances substantially down 28% y-o-y reflecting strong writebacks and recoveries
and an improving economic outlook
• Net profit of AED 5.3 billion up by a healthy 11% y-o-y
• Earnings per share up 14% to 80 fils for H1-22, underlying up 57%
Page 1 of 8➢ Emirates NBD’s strength empowers its customers to benefit from a growing economy
• Total assets: up 3% at AED 711 billion
• Customer loans: up 1% at AED 425 billion with a record half-year for retail financing and renewed
demand for corporate lending.
• Deposit mix: CASA grew AED 10 billion in H1-22 reflecting strong UAE liquidity, enabling the
Group to benefit from further interest rates rises
• Credit quality: NPL ratio improved by 0.3% to 6.1% in Q2-22 on healthy writebacks and recoveries
as the economy continues to strengthen. Coverage ratio very strong at 133.3%
• Capital and Liquidity: 155% Liquidity Coverage Ratio and 15.0% Common Equity Tier-1 ratio
reflect the Group’s solid balance sheet, used to empower customers and create opportunities to
prosper
➢ Emirates NBD’s digital transformation enables agile delivery of new services and increased
straight through processing
• Moody’s upgrade Emirates NBD’s short and long-term ratings recognising the Group’s resilient
post-pandemic financial fundamentals and increased diversification.
• 30% market share: Emirates NBD and Emirates Islamic have close to a combined 30% market
share of UAE Debit and Credit Card spend.
• International revenue diversifies income, representing 41% of total revenue
• IPO: leading role in the DEWA and TECOM IPOs, delivering customers a fully digital platform
enabling a seamless, paperless journey from on-boarding and subscription through to payment
• Digital: 93% of new product and servicing requests now fully automated, with 5% y-o-y
improvement eliminating 4 million manual interventions annually
• ESG: proudly support the ‘Dubai Can sustainability initiative’, Emirates NBD sponsor a public water
refill station, which has saved 91,000 single-use plastic bottles since February 2022
• Talent: launched the ‘National Digital Talent Program’ giving a UAE talent pool practical knowledge
in Digital, IT and Artificial Intelligence, supporting the UAE Government’s National Strategy for
Artificial Intelligence 2031
Page 2 of 8Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said:
▪ “Emirates NBD’s profits jumped 42% y-o-y to AED 3.5 billion in Q2-22, reflecting
the strong regional economy and the Group’s diversified sources of income.
▪ Emirates NBD played a leading role in both the DEWA and TECOM IPOs,
delivering customers a fully digital, straight through platform from on-boarding to
payment.
▪ We were delighted that Moody’s upgraded Emirates NBD’s short and long-term ratings, recognising the
Group’s resilient post-pandemic financial fundamentals and increased diversification.
▪ Emirates NBD has doubled down on its commitment to develop Emirati talent. In addition to enhancing
the Bank’s mainstream graduate program, which attracts over 100 graduates per year, we launched the
‘National Digital Talent Program’ giving a UAE talent pool practical knowledge in Digital, IT and Artificial
Intelligence, supporting the UAE Government’s National Strategy for Artificial Intelligence 2031.”
Shayne Nelson, Group Chief Executive Officer said:
▪ “Emirates NBD delivered strong results with total income rising 23% to AED 14.2
billion on improved loan and deposit mix, with higher interest rates feeding through
to margins.
▪ International operations contributed 41% of total income in H1-22.
▪ New lending increased substantially with a record half-year for retail lending and renewed corporate
lending demand.
▪ Impairment allowances substantially down 28% y-o-y reflecting the improving operating environment
▪ 93% of new product or servicing requests are now fully automated, with a 5% improvement on last year
eliminating 4 million manual interventions annually.
▪ These strong results, along with the positive outlook for margins, enable us to accelerate our investment
in our international network and digital capabilities, supporting our next stage of growth.”
Patrick Sullivan, Group Chief Financial Officer said:
▪ “We have maintained good income growth momentum, kept a firm control of costs
and seen a consistent decline in the cost of risk.
▪ Net profit of AED 5.3 billion increased by a healthy 11% y-o-y, comfortably
absorbing the impact from inflation in Turkey.
▪ The UAE banking sector continues to benefit from ample liquidity, helped by the high oil price. In H1-22
we grew CASA balances by AED 10 billion, enabling the Group to benefit from interest rates rises.
▪ In light of further expected rate rises, coupled with improving margins at DenizBank, we have raised our
net interest margin guidance raised by 50bps.
▪ Non-funded income also grew, with significant contributions from both Emirates NBD and DenizBank,
helped by an increase in transaction volumes and growth in customer foreign exchange and derivative
business.
▪ The diversified balance sheet, solid capital base and strong operating profitability are core strengths of
the Group.”
Page 3 of 8Financial Review
Half-year Half-year Better / Half-year Better /
AED billion ended ended (Worse) ended (Worse)
30-Jun-22 30-Jun-21 (%) 31-Dec-21 (%)
Net interest income 9.4 8.1 16% 8.8 8%
Non-funded income 4.8 3.4 40% 3.5 36%
Total income 14.2 11.5 23% 12.3 16%
Operating expenses (4.1) (3.8) (8)% (4.2) 4%
Pre-impairment operating profit 10.1 7.8 30% 8.1 26%
Impairment allowances (1.9) (2.6) 28% (3.3) 43%
Tax and others (1.1) (0.4) (199)% (0.2) (330)%
Profit after tax and before hyperinflation 7.2 4.8 50% 4.5 59%
Hyperinflation adjustment Tax and others (1.9) - n/m - n/m
Net profit 5.3 4.8 11% 4.5 18%
Key Metrics
Cost to income ratio (%) 28.7% 32.6% 390 bps 34.4% 570 bps
Net interest margin (%) 2.86% 2.45% 41 bps 2.61% 25 bps
Cost of Risk (bps) 79 114 35 bps 134 55 bps
EPS (AED) 0.80 0.70 0.10 0.68 0.12
Return on Tangible Equity (%) 14.6% 13.1% 150 bps 12.5% 210 bps
AED billion as at as at as at
Inc / Inc /
(Dec) (Dec)
30-Jun-22 30-Jun-21 31-Dec-21
Total assets 711 694 2% 687 3%
Loans 425 438 (3)% 422 1%
Deposits 468 458 2% 457 2%
Key Metrics
NPL Ratio (%) 6.1% 6.3% 20 bps 6.3% 20 bps
Impaired Loan Coverage Ratio (%) 133.3% 122.5% 1,080bps 127.5% 580 bps
Liquidity Coverage Ratio (%) 154.8% 158.8% (400) bps 177.6% (2280)bps
Capital Adequacy Ratio (%) 18.0% 18.7% (70) bps 18.3% (30) bps
Tier 1 Ratio (%) 16.9% 17.6% (70) bps 17.2% (30) bps
Common Equity Tier 1 Ratio 15.0% 15.6% (60) bps 15.1% (10) bps
Rounding differences may appear throughout the document
Page 4 of 8Operating Performance
Total income for H1-22 was up 23% y-o-y to AED 14.2 billion. Net interest income was up 16% y-o-y on
improved loan and deposit mix with higher rates feeding through to margins. Further CASA growth
improved funding costs and the balance sheet is well positioned to continue benefiting from rate rises.
Non-funded income was up 40% y-o-y from increased local and international card transactions, coupled
with growth in FX & Derivative income.
Expenses remain well controlled and within guidance. Higher income from rate rises enables accelerated
investment in Advanced Analytics and the international network to drive future growth.
Impairment allowances in H1-22 were down substantially 28%
H1 2022
y-o-y reflecting higher recoveries and writebacks and the 1.9
improving operating environment, with 79 bps cost of risk lower 2.6
Net profit
than guidance. 4.8 5.3
H1 2021 Costs
4.1 3.8 Provisions
Balance Sheet Trends
Loan increased by 1% in H1-22, with a strong half-year for EI
and Retail financing which grew by 11% and 8% respectively Dec-21 Jun-22 468
with DenizBank’s loans up 26%. 457
Deposit mix improved in H1-22 with AED 10 billion growth in
425
422
CASA enabling the Group to benefit further from interest rate
rises.
Loans Deposits
Liquidity remains strong with the Liquidity Coverage Ratio at
154.8% and the Advances to Deposits Ratio at 90.8%.
During the first half of 2022, the Non-Performing Loan ratio
improved by 0.2% to 6.1% whilst the Coverage ratio
Dec-21 Jun-22
strengthened to 133.3%, demonstrating the Group’s continued
18.3% 18.0%
prudent approach towards credit risk management.
15.1% 15.0%
As at 30 June 2022, the Group’s Common Equity Tier 1 ratio is
15.0%, Tier 1 ratio is 16.9% and Capital Adequacy ratio is
18.0%.
CAR CET-1
Page 5 of 8Business Performance
▪ Retail Banking and Wealth Management (RBWM) had an excellent first half with highest ever
revenue, strongest ever acquisition of loans and credit cards, and a record growth in balance sheet.
- Robust business momentum continued in the UAE with H1 Loan origination up 41% y-o-y, Credit
Card acquisitions up 100% y-o-y and Card spends up 35% y-o-y
- Customer advances increased by AED 4.9 billion, whilst CASA grew by a record AED 15.5 billion
in H1
- Income up 17% y-o-y with RBWM delivering its highest ever half yearly revenue and fee income
- Emirates NBD Etihad Guest Credit Card launched, offering one of the highest Etihad Guest earning
and rewards opportunities and signed a 5-year strategic partnership with RSA covering general
insurance products
- Launched DEWA and TECOM IPO portal on Emirates NBD website with real time direct integration
with DFM
▪ Corporate and Institutional Banking (C&IB) developing strategic partnership with major Government
entities and Corporates by digitizing service platforms.
- Took lead in supporting IPOs, with end-to-end IPO subscription website offering real-time on-
boarding through a state-of-the-art fully digital platform
- Implemented cutting-edge new platform for businessONLINE
- Net Profit jumped 10% y-o-y on higher fee income and lower impairment allowances
- Strong growth in new lending offset substantial contractual repayments
▪ Global Markets and Treasury (GM&T) delivered a strong performance with net interest income
growing 264% y-o-y in H1-22 due to higher income from balance sheet positioning, hedges and an
increase in banking book investment income.
- Non funded income was 289% higher with a significant performance delivered by Rates, Credit
and Foreign exchange Trading.
- International Treasury functions made a significant contribution, growing their revenue contribution
by 186%.
▪ Emirates Islamic’s net profit up 23% y-o-y to AED 701 million on higher income and lower
impairment allowances and customer financing grew 11% in H1-22.
▪ DenizBank income up by AED 1.4 billion (42%) and Impairment allowances AED 0.6 billion lower on
strong writebacks and recoveries helping offset AED 1.9 billion hyperinflation adjustment.
Page 6 of 8Outlook
For the UAE and the GCC, higher oil prices will push budgets into surplus and reduce the need for
sovereign debt issuance this year. Central Bank statistics show that the UAE’s economy expanded by
8.2% y-o-y in the first quarter of 2022, led by higher oil production and strong 6% growth from the non-oil
sector, as the country benefitted from increased travel & tourism, coupled with the positive impact of Expo
2020.
Global Inflation at multi-decade highs has led to interest rates rising at a faster pace than had been
expected just a few months ago. The Federal Reserve is expected to raise rates by at least another 200bp
before year-end.
Egypt and Turkey have seen a strong surge in services inflow and tourism revenue as global travel
resumed, which is offsetting some of the impact from rising energy costs on the current account deficit.
-ENDS-
Page 7 of 8Awards:
Best Bank and Best Regional Bank Awards – Emirates NBD
 Emirates NBD won ‘Best Bank in the UAE by Global Finance World’s Best Banks 2022 Awards
 Emirates NBD ranked 8th in Forbes’ Top 100 Listed Companies in the Middle East for 2022
 Emirates NBD won ‘5 Decades of Success’ award in the banking category by Arabian Business
Awards 2021
 Emirates NBD won ‘Best Innovation in Retail Banking’ by MEA Finance Banking Technology
Summit & Awards 2022
 Emirates NBD won the ‘Best Foreign Bank in KSA’ and the ‘Best Credit Card in KSA’ award at
the 2021 International Finance Awards
 Emirates NBD won Best AI Use-Case in the Private Sector for the Banking segment at the World
AI Show & Awards
 Emirates NBD Capital won international accolades including:
• ‘Structured Finance Bank of the Year’, ‘Islamic Syndication House of the Year’ and 8
deal awards by Bonds, Loans & Sukuk Middle East Awards 2022
• ‘Saudi Arabia Deal of the Year’, ‘Hybrid Deal of the Year’, ‘Kuwait Deal of the Year’,
‘Sovereign & Multilateral Deal of the Year’ and ‘Turkey Deal of the Year’ by Islamic
Finance News Deal of the Year 2022 Awards
Marketing, Social Media and Customer Engagement Awards – Emirates NBD
 Emirates NBD was named the UAE’s most valuable banking brand and MENA’s third most
valuable banking brand, with a value of USD 3.6 billion, in The Banker’s 2022 brand valuation
 Emirates NBD won ‘Excellence in Customer Service Innovation’ in the Strategy Awards category
at the Digital CX Awards 2022 by The Digital Banker
Emirates Islamic
 Emirates Islamic was named the UAE’s most valuable Islamic banking brand and MENA’s sixth
most valuable Islamic banking brand, with a value of USD 325 million, in The Banker’s 2022
brand valuation
Emirates NBD has a leading retail banking franchise, with 900 branches and 4,086 ATMs / SDMs in the UAE and overseas. It is a
major player in the UAE corporate and retail banking arena, and has strong Islamic banking, investment banking, private banking,
asset management, global markets & treasury and brokerage operations. The bank has operations in the UAE, Egypt, India, Turkey,
the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Bahrain, Russia and representative offices in China
and Indonesia. For more information, please visit: www.emiratesnbd.com
For more information:
Ibrahim Sowaidan Patrick Clerkin
SVP, Head - Group Corporate Affairs Senior Managing Director, Group Funding & Investor Relations
Emirates NBD Emirates NBD
Telephone: +971 4 609 4113 / +971 50 6538937 Telephone: +971 4 609 3007
e-mail: ibrahims@emiratesnbd.com e-mail: IR@EmiratesNBD.com / PatrickE@EmiratesNBD.com
This document has been prepared by Emirates NBD Bank PJSC (ENBD) for information purposes only. The information, statements and opinions contained in this document do
not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or
recommendation with respect to such securities or other financial instruments. This document is not intended for distribution in any jurisdiction in which such distribution would
be contrary to local law or reputation. The material contained in this press release is intended to be general background information on ENBD and its activities and does not
purport to be complete. It may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to
the accuracy, completeness or reliability of the information. It is not intended that this document be relied upon as advice to investors or potential investors, who should consider
seeking independent professional advice depending on their specific investment objectives, financial situation or particular needs. In the event that the press release contains
any pro forma financial information on ENBD, that information has been prepared for illustrative purposes only, may address a hypothetical situation and may not give a true
picture of the financial performance of the ENBD group. Furthermore, any pro forma financial information may only be meaningful where read in conjunction with the historical
audited consolidated financial statements of ENBD. Unless expressly disclosed to the contrary, any pro forma financial information has been compiled based on the accounting
policies of the group as disclosed in its most recent consolidated financial statements.This document may contain certain forward-looking statements with respect to certain of
ENBD’s plans and its current goals and expectations relating to future financial conditions, performance and results. These statements relate to ENBD’s current view with respect
to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond ENBD’s control and have been made based upon
management’s expectations and beliefs concerning future developments and their potential effect upon ENBD. By their nature, these forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances which are beyond ENBD’s control, including, among others, the UAE domestic and global economic and
business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact
of competition, the timing impact and other uncertainties of future acquisition or combinations within relevant industries. As a result, ENBD’s actual future condition, performance
and results may differ materially from the plans, goals and expectations set out in ENBD’s forward-looking statements and persons reading this document should not place
reliance on forward-looking statements. Such forward-looking statements are made only as at the date on which such statements are made and ENBD does not undertake to
update forward-looking statements contained in this document or any other forward-looking statement it may make.
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Sentiment: neutral