- Strong start to 2023 with Group operating income of AED 6.7 billion, up 14% sequentially and 51% year-on-year, driven by sustained momentum across all business segments, and enhanced income generation across products and geographies
- Group Net Profit of AED 3.9 Billion, up 60% sequentially and 70% year-on-year excluding Magnati-related gains booked in the first quarter of 2022
- Return on Tangible Equity (RoTE) improves to 18.5%, driving strong capital accretion with March-end 2023 Group CET1 at 13.2%
- Solid balance sheet fundamentals across all key metrics, with AED 80 Billion customer deposit inflows during the quarter, underlining franchise strength and our superior credit rating of AA- or equivalent as one of the safest banks in the world
- First quarter 2023 results underline solid progress against our growth strategy as the regional financial institution of choice, powering cross-border trade, economic growth and the transition to a low-carbon future, while emphasising our firm commitment to deliver superior and sustainable shareholder returns.
Q1’23 Key Performance Indicators
 Excluding Magnati-related capital gains in 2022
High double-digit earnings growth driven by sustained business activity, benefits from higher interest rates, and enhanced income generation across a diversified franchise
- Operating income at AED 6.7 Billion, up 51% yoy driven by strong growth in both net interest and non-interest income
- Net Profit at AED 3.9 Billion, up 60% sequentially, translating to an annualised Return on Tangible Equity (RoTE) of 18.5%
- Q1’23 Net Profit up 70% yoy excluding AED 2.8 Billion Magnati-related gains in Q1’22
- Cost-to-income ratio at 25.1%, compared to 33.2% in Q1’22
- Impairment charges (net) at AED 798 Million, implying an annualised cost of risk of 62 bps
Solid balance sheet fundamentals supported by a strong liquidity position and healthy loan growth
- Loans, advances and Islamic financing at AED 473 Billion, up 3% qoq and 9% yoy
- Customer deposits at AED 781 Billion, up 11% qoq and 30% yoy; record CASA balances at AED 316 Billion, up 6% qoq
- Liquidity Coverage Ratio (LCR) at 151% underlines robust liquidity and funding profile
- NPL ratio stable at 3.8% with a provision coverage of 101%
- Common Equity Tier 1 (CET1) strengthened by 57bps qoq to 13.2%, driven by earnings generation and continued RWA optimisation
2023 is off to a strong start with the Group delivering an operating income of AED 6.7 Billion, a 60% growth in net profit sequentially to AED 3.9 Billion and a return on tangible equity of 18.5% driving strong capital accretion in the first quarter. Building on a record year in 2022 and prudent actions taken in the fourth quarter of last year, the notable improvement across these metrics was driven by sustained momentum across all business segments and product lines, cost and risk discipline, and our proven ability to navigate evolving market conditions. The enhanced contribution from our international operations further demonstrates the strength of our diversified franchise and solid delivery against our growth strategy.
Amid turbulence in the global banking industry, the Group continues to operate on a sound balance sheet foundation, including a solid capital position and a very strong liquidity profile. In the first quarter alone, we attracted AED 80 Billion in customer deposits, emphasising the depth of our relationships, and our superior credit ratings of AA- or equivalent as one of the safest banks worldwide.
During the period, we remained focused on meeting our clients’ evolving needs, across all segments. Using our scale, specialisation, partnerships, and the transformative power of technology, we are building a bank fit for the future, centred around our customers. We expanded our product offerings and grew our reach in strategic markets, while maintaining the highest standards of risk management, compliance and corporate governance. At the same time, we are investing in key areas to sustain our competitive advantage including talent and technology.
Building on our strong ESG profile, we are also very pleased to have made significant progress towards our Net Zero journey by setting carbon emission reduction targets across the highest emitting sectors in our portfolio, hence becoming the first MENA bank to do so.
These achievements are clear indicators of the progress we have made in delivering our growth strategy, which was further underlined this quarter as we were named the most valuable banking brand in the UAE by Brand Finance.
The Group is uniquely positioned to navigate uncertain times, drive sustainable growth and shape the future of banking in the UAE and the broader region. I am excited by the opportunities that lie ahead as we continue to power economic progress as our clients’ most trusted partner and regional financial institution of choice.