Emirates NBD delivers net profit of Dhs4.1 billion in H1

Emirates NBD, a leading banking group in the region, delivered a net profit of Dhs4.1 billion for the first half of 2020. Net interest income increased 36% y-o-y and non-funded income grew 24% y-o-y with the acquisition of DenizBank in 2019, the bank said in a statement.

Net profit declined 45% y-o-y due to higher impairment charges and the gain on disposal of a stake in Network International not repeated in 2020. Excluding the gain from Network International net profit was down 24 per cent, it added.

Total assets at Dhs694 billion, up 2 per cent from end 2019, and customer loans were at Dhs443 billion, up 1 per cent from end 2019. Similarly, customer deposits were at Dhs461 billion, down 2 per cent from end 2019, non-performing loan ratio increased to 5.8 per cent and coverage ratio remained strong at 116.9 per cent.

Liquidity coverage ratio of 152.5 per cent and advances to deposit ratio of 96.1 per cent demonstrate a healthy liquidity position, the bank noted, adding that common equity tier 1 ratio strengthened to 15.3 per cent, over 7 per cent above minimum requirements.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD, said, “Emirates NBD delivered a net profit of Dhs4.1 billion for the first half of 2020 and maintained a strong balance sheet.” Commenting on the Group’s performance, Shayne Nelson, Group Chief Executive Officer, said, “Throughout these unprecedented times, we have put the safety and well-being of our customers and staff first. We proactively reached out to our customer base and support has now been provided to approximately one-tenth of our customers primarily through the deferral of over eight billion dirhams of interest and principal for periods of up to six months.

Emirates NBD Capital Limited, the investment banking arm of Emirates NBD (ENBD) has successfully closed Islamic Development Bank (IsDB)’s first ever USD sustainability sukuk. The bank acted as Joint Lead Manager and Bookrunner for the landmark transaction by IsDB, rated Aaa/AAA/AAA by Moody’s/S&P/Fitch (each with stable outlook) The $1.5 billion, five-year Sukuk is testament to IsDB’s long-standing commitment to prioritising the UN Sustainable Development Goals (SDGs) in accordance with the specific development needs of its 57 Member Countries (MCs).

 WAM