USD 8.4 billion in gains from UAE capital markets in first quarter

A report issued by Kamco Invest on the profits of companies listed on the Gulf stock exchanges, reviewed by Vision, revealed that the listed Emirati companies recorded record profits during the first quarter of this year. achieved.

Abu Dhabi mark

Companies listed on the Abu Dhabi Stock Exchange saw a 63.3% increase in net profit to $ 5.7 billion in the first quarter of 2022, compared to $ 3.5 billion in the first quarter of 2021 , mainly supported by the increase in banking sector profits.

The sector’s net profit was $ 2.2 billion, compared to $ 1.2 billion in the first quarter of 2021, where it saw an annual increase of $ 931.4 million, or 75.8%. The telecommunications sector recorded the second largest net profit for the first quarter of 2022, with year-on-year profit growth of 9.6% to reach $ 684.8 million, compared to $ 624.9 million in the first quarter of 2021 .

The capital goods, utilities and food production sectors were among the sectors that recorded an increase in net profit during the quarter. On the other hand, profits from a number of sectors that included pharmaceuticals, insurance, food and food retail fell during this quarter.

In the banking sector, First Abu Dhabi Bank led the largest absolute increase in net profit in the first quarter of 2022, with an annual growth rate of 106.8% to reach $ 1.4 billion, compared to a net profit of $ 674 million during the first quarter of 2021..

This increase is attributed to the strong growth in lending, which contributed to the continued increase in demand and the improvement of the deposit mix.

Abu Dhabi Commercial Bank recorded the second largest net profit in the banking sector for the first quarter of 2022, with a net profit of $ 403.9 million, and a 32.3% year-on-year growth, thanks to the improvement in economic conditions in the UAE, as banks diversified their book lending, in addition to the improvement in the performance of subsidiaries.

The capital goods sector saw the largest increase in quarterly profits on an annual basis, as the sector’s net profit in the first quarter of 2022 was $ 553 million, compared to $ 39.6 million in the first quarter of 2021. This jump in profits is attributed to the good performance of the company The newly listed Alpha Abu Dhabi Holding Company, whose net profit doubled to $ 537 million in the first quarter of 2022 compared to $ 27.4 million in the first quarter of 2021.

The company attributed this good performance to an increase in its portfolio, in addition to other significant strategic investments and acquisitions made during the quarter. As for the other component of the sector index, namely Abu Dhabi Shipbuilding Company, the company announced a quarterly profit of $ 0.5 million, a noticeable improvement compared to losses of $ 4.3 million in the first quarter of 2021.

Dubai mark

Profits of companies listed on the Dubai Financial Market increased by 56.0% year-on-year to reach $ 2.7 billion in the first quarter of 2022 compared to $ 1.8 billion in the first quarter of 2021. The Growth in profits in the first quarter of the year was attributed to the strong performance observed in both the real estate and banking sectors.

The two sectors contributed the bulk of corporate profits in the first quarter of 2022 on an annualized basis, 126.5% and 45.3%, respectively. It should be noted that out of the 11 sectors of the stock exchange, 7 sectors saw an annual growth in profits during the first quarter of 2022, while the profits of 4 sectors fell, including the insurance and capital goods sectors.

In the banking sector, Emirates increased NBD’s profit by 18.1% to $ 746.5 million in the first quarter of 2022, which greatly contributed to boosting the sector’s growth during this quarter. These are the bank’s best results since 2019.

These excellent results are due to the growth in deposits and customer transactions, in addition to the decrease in provisions for impairment during the quarter.

On the other hand, Mashreq Bank recorded a significant jump in the value of absolute profits, with the net profit of the first quarter of 2022 reaching $ 165 million, compared to $ 11.7 million in the first quarter of 2021.

These positive results are attributed to an increase in operating income and a decrease in risk provisions.

The real estate sector was the main supporter of profits recorded in the first quarter of 2022, with a net profit of $ 899 million, compared to $ 397 million in the first quarter of 2021.

The sector experienced the largest growth rate in absolute terms of net profit recorded in the first quarter of 2022 thanks to the good performance of Emaar Properties, which saw a big jump in the first quarter of 2022 and its profit by 2, Doubled 5 times to $ 609.6 million compared to $ 178.7 million in the first quarter of 2021.

The company’s results are attributed to the company’s high market share in the Egyptian and Indian markets, in addition to the increase in property sales in general. In comparison, Union Properties announced that for the third consecutive quarter, it recorded losses of $ 3.4 million in the first quarter of 2022, compared to profits of $ 1.5 million in the first quarter of 2021. The company’s loss is mainly due to due to higher financing costs due up to $ 4.6 million due to some old loans.

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