Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Banking sector shined in earnings reported by the listed companies in the UAE for the fourth quarter of 2024, according to a report by Kamco Invest.
In Abu Dhabi, the banking sector emerged as a strong performer. Banks in the emirate recorded a 10.9% year-on-year (YoY) increase in net profits during Q4-2024, reaching $2.4 billion, up from $2.1 billion in Q4-2023. On a full-year basis, the sector’s net earnings rose by 15.1% to $10.2 billion, driven by robust performances from leading institutions such as Abu Dhabi Commercial Bank, which saw a 14.8% increase in profits to $2.6 billion, and First Abu Dhabi Bank, whose profits edged up 4% to $4.6 billion. Bank of Sharjah returned to profitability with $104.7 million, rebounding from a loss of $74.5 million in 2023.
Beyond banking, the Energy sector in Abu Dhabi reported strong gains. Net earnings rose to $6.8 billion in 2024, compared to $6.1 billion in 2023. Three of the four companies in the sector reported growth, led by ADNOC Gas with profits of $5.0 billion, up from $4.7 billion, and ADNOC Drilling, which reported a 26.6% increase to $1.3 billion, the highest annual income since its IPO in 2021. “The company’s (ADNOC Drilling) strong performance was underpinned by robust demand for domestic gas which supported volume growth and improved pricing,” the Kamco Invest report said.
In a notable performance, the Capital Goods sector in Abu Dhabi also recorded a fourfold increase in Q4 2024 profits, reaching $1.1 billion, up from $255.1 million in Q4 2023.
Dubai-listed companies enjoyed a 20.1% YoY growth in Q4 2024 net profits, reaching $6.7 billion, up from $5.6 billion in Q4 2023. This growth was primarily powered by strong results in the Banking, Real Estate, and Utilities sectors, which together contributed 86.4% of total earnings.
The Banking sector continued to lead, with a 12.2% YoY profit growth in Q4, totaling $2.9 billion. Full-year profits reached $12.6 billion, up from $11.3 billion in 2023. Major contributors included Emirates NBD with $6.3 billion in profits (up 6.9%), Dubai Islamic Bank with $2.2 billion (up 16.7%), and Mashreq Bank with $2.4 billion (up 3.3%).
The Real Estate sector also posted robust numbers. Q4 2024 profits rose 19.7% YoY to $2.4 billion, while full-year earnings grew by 12.2% to reach $6.3 billion. Leading the pack, Emaar Properties reported a 16.2% increase in profits to $3.7 billion, supported by a record Dh70 billion ($19 billion) in property sales and a 100% dividend payout.
The Telecom sector also contributed positively, with du reporting a 49.1% increase in net profits, reaching $677.3 million in 2024.
“It is noteworthy that out of DFM’s 13 sectors, eight have witnessed a YoY increase in profits during Q4-2024 while the remaining five sectors, including the Utilities sectors, witnessed declines,” the Kamco Invest report said.
