Dubai’s Emirates NBD reports 17% year-on-year rise in net profit for H1 2021

Dubai lender Emirates NBD reported Dhs4.8bn in net profit for H1 2021, up 17 per cent year-on-year from Dhs4.09bn recorded during H1 2020.

Net profit grew 66 per cent rise over the preceding half year. The bank’s total income, equalling Dhs11.54bn, fell 9 per cent from Dhs12.63bn recorded during a year-earlier period as higher non-funded income was offset by a decline in net interest income due to lower interest rates.

Meanwhile, expenses declined 6 per cent year-on-year to Dhs3.8bn due to lower staff and operating costs and lower costs from DenizBank. Net interest margin stood at 2.45 per cent while total assets during the first half of the year equalled Dhs694bn.

NPL ratio increased marginally by 0.1 per cent to 6.3 per cent in H1-21 with coverage ratio strengthening to 122.5 per cent. Impairment allowances in H1 2021 of Dhs2.6bn reduced 30 per cent over the preceding half year and 38 per cent from a year earlier period due to improving economic conditions, and following proactive provisioning in 2020, a statement said, adding that Emirates NBD was also the first bank in the UAE to offer an eco-friendly debit card made from recycled plastic.

DenizBank issued a $410m multi-currency syndicated loan, while its digital bank Liv. serviced more than 470,000 customers in the UAE and 75,000 customers in Saudi Arabia.

Shayne Nelson, group chief executive officer said: “Emirates NBD’s profits jumped 17 per cent as the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels. The group expanded its branch presence in Saudi Arabia to seven with the opening of a third branch in Riyadh. We reinforced our commitment to sustainable and responsible investment and launched the UAE’s first eco-friendly debit card made from recycled plastic. In the second quarter we upgraded our global payment system, enabling much faster cross-border payments and more visible tracking, improving the overall experience for our customers.”