Banks account for 33% of listed companies’ profits during the first quarter of 2022

  • Banks seize 33% of local companies’ profits in the first quarter
  • 13.36 Banking profits in the UAE during the first quarter, and Abu Dhabi First received 38.3% of the profits
  • 4 billion dirhams, profits of UAE real estate companies in the first quarter of 2022
  • Profits of listed UAEs increase by 62.7%
  • International Holdings acquires more than half of the investment sector’s profits and Alfa accounts for 40%
  • Oil prices and interest rate hikes strengthen expectations of continued good performance in the second quarter

The companies listed in the UAE capital markets continue to confirm the strength and solidity of the local economy in the light of global developments, which emerged in the performance of local companies during the first quarter of this year.

A survey conducted by Vision for the performance of 126 listed Emirati companies showed an increase in their profits during the first quarter of 2022 to 40.2 billion dirhams, compared to profits of 24.7 billion dirhams, a increase of 62.7%.

According to the monitoring, the profits of the Abu Dhabi market during the first three months of the year amounted to 27 billion dirhams, compared to profits of 13.2 billion dirhams in the comparable period from 2021.

While Dubai market companies recorded profit of 13.15 billion dirhams, an increase of 15.8%, compared to profits of 11.35 billion dirhams in the first quarter of last year.

In turn, Waddah Al-Taha, a member of the Advisory Board at the Chartered Institute of Securities and Investment and financial analyst, said that the majority of UAE companies managed to achieve remarkable performance and a significant increase in profits during the first quarter. especially banking. sector and large companies such as Emaar Real Estate and Air Arabia.

Waddah indicated that the good performance of local companies is expected to continue during the second quarter of the year, supported by the rise in international oil prices, which is expected to be reflected in the performance of local companies as well as the banking sector benefiting. of the rise in interest rates during the current quarter.

In turn, Kamco Invest’s Vice President of Research and Investment Strategies, Raed Diab, said the UAE markets have strong fundamentals that emerged in the strong performance of the listed companies during the first quarter of this year and their performance. during 2021, thanks to the infrastructure the country enjoys.

Banks

Profits from the banking and financial sector listed in the UAE markets recorded approximately 13.36 billion dirhams, compared to 8.29 billion dirhams in the first quarter of 2021, an increase of 61.15%.

Profits from the banking sector in Abu Dhabi increased by 75.9% to 7.9 billion dirhams, compared to 4.49 billion dirhams, while in the Dubai market it recorded 5.45 billion dirhams, compared to 3.79 billion dirhams in the comparative quarter of 2021.

The banking sector withdrew about 33% of the total profits of companies listed in the local capital markets, led by First Abu Dhabi, which grabbed 38.3% of the total profits of the sector.

According to the monitoring, First Abu Dhabi achieved the UAE banks in the first quarter of this year with about 5.12 billion dirhams on top of the UAE banks, followed by Emirates NBD with profits of 2.7 billion dirhams, while Mashreq Bank the performance of banks in terms of the rate of increase in profits during the period by up to 1310%.

During the period, First Abu Dhabi’s net profit was 5.1 billion dirhams, compared to 2.5 billion dirhams in the first quarter of 2021, representing an increase of 107%.

These results included a net profit of 2.8 billion dirhams due to the sale of a stake in the payment company “Magnati”, and the group achieved strong growth due to the increase in net interest income, the increase in fees and commissions, in addition to the positive contribution of Bank Audi’s business, which contributed to compensate for the decrease in income from the business and investment.

Operating expenses increased compared to the same period in 2021, due to sustained investments in digital and strategic initiatives, and the business of Bank Audi Egypt. The group also maintained outstanding rates of asset quality, liquidity, financing and capital.

During the first quarter of this year, Emirates’ NBD profits rose to 2.74 billion dirhams, compared to profits of about 2.32 billion dirhams at the end of the first quarter of 2021, which exceeded expectations of a net profit of Would achieve 2.47 billion dirhams, supported by a 20% decrease in impairment provisions to 1.4 billion dirhams, and a 4% increase in net interest income, in addition to the growth in lending activity to individuals amid the economic recovery from the repercussions of the Corona pandemic.

Property

At the level of real estate companies, they made a profit of 3.97 billion dirhams during the first quarter of this year, compared to 2.18 billion dirhams in the comparative quarter of 2021, an increase of 82%.

During the first quarter of 2022, the sector companies accounted for about 10% of the companies’ total profits.

And Emaar Properties grabbed about 56% of the sector’s total profits, while Emaar Properties and Emaar Development grabbed about 82% of the total corporate profits.

Emaar Properties is regarded as the highest growth rate in quarterly profits at the level of sector companies, and it is also at the forefront of companies to achieve profits of more than two billion dirhams.

During the first quarter of 2022, Emaar Properties achieved an increase in net profit with a growth rate of 241% to reach 2.239 billion dirhams, compared to 657 million dirhams in the first quarter of 2021.

While Emaar Development, in which Emaar Properties has a majority stake, recorded one of its highest rates of property sales and quarterly net profits during the first quarter of January to March 2022, and net profit of 1.05 billion dirhams in the first quarter of 2022 achieved. , an increase of 34% compared to the first quarter of 2021.

investment

The profit of investment firms increased to 7.08 billion dirhams during the first quarter of this year, compared to a profit of 1.86 billion dirhams in the comparable quarter of last year, an increase of 280.6%.

The International Holdings Company made more than half of the sector’s profits, while Affabbi accounted for about 40% of the sector’s total profits during the period.

Driven by growth in all subsidiaries, Global Holding recorded a profit of 3.55 billion dirhams in the first quarter of 2022, compared to profits of 1.5 billion dirhams in the first quarter of 2021, together with revenue of 10.49 billion dirhams ; While the total assets amounted to 96.04 billion dirhams.

Top 10 companies by market capitalization

The top ten companies listed in terms of market value in the UAE markets recorded a profit of 23.69 billion dirhams during the first quarter of 2022, compared to profits of 12.99 billion dirhams during the comparative quarter of 2021, ‘ an increase of 82.3%.

The ten major companies include: First Abu Dhabi, International Holdings, Alpha Abu Dhabi, Taqa, Etisalat Group, ADNOC Distribution, Abu Dhabi Commercial, ADNOC Drilling, Emirates NBD, Emaar Properties.

The 10 largest companies by profit value

In terms of the value of profits, First Abu Dhabi was at the top of the scene, where the bank grabbed about 12.7% of the total profit, followed by International Holding, then Affabi, Emirates NBD, followed by Etisalat and Emaar Properties, then Taqah , then Abu Dhabi Commercial, Dubai Islamic, and then Fairglobe.

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