Emirates NBD, Dubai's biggest lender by assets, reported a 40 per cent annual surge in 2022 net profit on higher net interest income and lower impairment allowances.
Net profit attributable to equity holders of the group for the full year climbed to Dh13 billion ($3.53 billion), the lender said in a statement on Thursday to the Dubai Financial Market, where its shares are traded.
Net interest income for the period jumped 35 per cent annually to Dh19.9 billion, while total operating income for the 12 months rose by 36 per cent year on year to Dh32.5 billion.
Impairment allowances fell 12 per cent to Dh5.18 billion, the lender said.
“Emirates NBD’s profits jumped … reflecting strong regional economic growth and the success of the group’s diversified business model,” said Sheikh Ahmed bin Saeed, chairman of Emirates NBD.
“We are proud to support the ‘D33’ Dubai Economic Agenda which aims to double the size of the emirate’s economy in 10 years and make Dubai one of the top three international destinations for tourism and business.”
The UAE's economy continues to recover from the coronavirus pandemic on the back of higher oil prices and government initiatives to support businesses.
The UAE economy was projected to grow by 7.6 per cent last year, the highest in 11 years, driven by the oil and non-oil sectors, after expanding by 3.8 per cent in 2021, according to the UAE Central Bank. The country’s economy is projected to grow 3.9 per cent in 2023, according to the regulator.
First Abu Dhabi Bank forecasts hydrocarbon and non-hydrocarbon real gross domestic product growth of 5.4 per cent and 4.7 per cent, respectively, for the UAE's economy this year.
Emirates NBD expects the UAE's GDP to grow by 3.9 per cent in 2023, well ahead of the World Bank’s global growth forecast of 1.7 per cent.
“The outlook for the Middle East remains positive despite a weaker global backdrop,” Emirates NBD said.
“Higher oil prices in 2022 have pushed GCC budgets into surplus and strengthened sovereign balance sheets.”
Customer deposits rose 10 per cent year on year to Dh503 billion, while the total assets of the bank grew 8 per cent to Dh742 billion.
New corporate lending rose by Dh50 billion in 2022 “reflecting continued business optimism” while current and savings accounts grew by 20 billion “helped by strong sector liquidity”, the lender said.
“Dubai’s economy is forecast to deliver strong growth in 2023 and the group’s solid balance sheet is ready to support our customers and help them grow both locally and internationally,” Shayne Nelson, Emirates NBD's group chief executive, said.
The lender continued to expand its operations in different markets.
It opened two new “full service” branches in India last year in Gurugram and Chennai, adding to its branch in Mumbai which opened in 2017.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
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18
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450,000
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Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
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On sale: May or June
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