The UAE continues to make large profits in both the banking and real estate sectors. While Emirates NBD increased its Q3 net profit by 51% year on year (YoY), Aldar Properties’ Q3 net earnings increased by 27% over the same period last year.
Dubai’s Emirates NBD has posted a 25% year-on-year (YoY) rise in net profit on the back of strong lending growth and high-interest rates.
Its Q3 net profit rose YoY to 3.8 billion dirhams, while net interest income was 37% higher, driven by an improved loan and deposit mix.
Net profit for the first nine months of the year reached 9.1 billion dirhams ($2.4 billion), up from 7.3 billion dirhams in the same period last year and almost at 2021 full-year profit level, the bank said in a bourse filing on Thursday.
“Group profit was up 25% on strong diversified income growth,” the bank said.
Emirates NBD also noted that higher interest rates had fed through to margins, while lending growth was strong.
Additionally, the filing noted that there was strong new lending from retail and corporate customers.
The bank’s non-funded income was up 83% YoY during the period, thanks to higher activity that includes local and international card transactions.
Al Dar Properties
The UAE developer Aldar Properties’s Q3-2022 net profits surged to 601 million dirhams ($163.6 million).
Group revenue for the quarter rose 30% on year to 2.71 billion dirhams, the developer said in a statement on the Abu Dhabi Securities Exchange on Thursday.
Sales for Aldar Development jumped 46% YoY to 3.93 billion dirhams driven by continued strong demand for existing inventory and new property launches in the UAE as well as robust sales in Egypt. Year-to-date sales stood at 9.3 billion dirhams, surpassing FY2021 total group sales by 2 billion dirhams, it added.
Residential property sales in the UAE have seen strong momentum, bolstered by stronger demand and increasing buyer activity amid business and social reforms and government stimulus measures. These reforms have led to an increasingly mature asset market and an increased stream of international and resident expatriate buyers.