Dubai’s Emirates NBD’s net profit rises by 34 per cent to Dhs9.3bn in 2021

Emirates NBD’s net profit jumped 34 per cent to Dhs9.3bn in 2021, riding on the economic recovery and resilience of the group’s diversified business model.

Despite interest rates remaining at low levels, the underlying business momentum continued to strengthen with record demand for retail financing. The group’s balance sheet strengthened with further improvements in deposit mix, core capital and liquidity while credit quality remained stable.

Emirates NBD’s total income was up 3 per cent year on year to Dhs23.8bn, as higher retail volumes offset the impact of low interest rates. Total assets were down by 2 per cent at Dhs687bn due to currency translation, while customer loans were valued at Dh422bn, with 2021 being a record year for retail financing.

Shayne Nelson, group CEO said, “The rise in income despite low interest rates, coupled with an improvement in the cost of risk to pre-pandemic levels, helped deliver a Dhs9.3bn profit. International operations contributed 38 per cent of the total income in 2021. The funding mix improved, as we added a further Dhs38bn of current accounts and saving account balances during 2021, and we are well positioned to benefit from a potential rise in interest rates.”

Hesham Abdulla Al Qassim, vice chairman and MD, Emirates NBD, said: “The diversified balance sheet and solid capital base remains a core strength of the group. We used this strength to support clients in 2021, empowering them to be part of the economic recovery. With 98 per cent of transactions now through digital channels, we continue to be a leader in digital banking and innovation.”

Nelson added: “We continue to maintain a strict control on expenses and have headroom to invest in advanced analytics, enabling us to leverage further from our digital transformation. The balance sheet remains rock solid with sound capital, liquidity and credit quality enabling the board to propose a substantial increase in dividend to 50 fils per share.”