Emirates NBD achieved a net profit of 2.1 billion dirhams, during the first quarter of this year, an increase of 3%, compared to the previous quarter, and a decrease of 24%, compared to the same period last year, while the total income amounted to 6.9 billion dirhams, up 46% , Compared to the same period in 2019.

Total assets increased by 1%, compared to the end of last year to reach 692 billion dirhams, and customer loans increased by 1%, compared to the end of 2019, to 443 billion dirhams, while customer deposits are still maintaining their levels for the past year at 467 billion dirhams.

Strong results

In detail, Emirates NBD announced strong financial results for the first quarter of this year, culminated in an increase in net profit by 3%, compared to the previous quarter to reach 2.1 billion dirhams.

Net interest income increased by 45%, compared to the same period last year, while non-interest income witnessed a growth of 48%, compared to the same period of 2019, with the acquisition of "Denizbank".

Total income reached 6.9 billion dirhams during the first quarter of 2020, up by 46%, compared to the same period last year as a result of loan growth and higher fee income, including "Denizbank".

Cost of risk

According to a statement issued yesterday, the bank's net profit decreased by 24%, compared to the same period last year, as a result of the increase in the provisions for impairment provisions, while the group's balance sheet still maintains its strong position, good liquidity rates, credit quality and capital ratios.

Provisions for impairment increased to reach AED 2.6 billion, with an increase in the net cost of risks by 210 basis points annually, as a result of the Group increasing the coverage of phases (1) and (2) of the expected provision for credit losses.

Origins

The net interest margin also improved by 19 basis points, compared to the same period in the previous year, to reach 3.02%, supported by the positive impact of «Denizbank».

Total assets increased by 1%, compared to the end of 2019 to reach 692 billion dirhams, and customer loans increased by 1%, compared to the end of 2019 to reach 443 billion dirhams, while customer deposits are still maintaining their levels for the past year at 467 billion dirhams.

The ratio of low-value loans remained stable at 5.5%, while the coverage ratio improved by 8.2% to 120.5%, while the liquidity coverage rate was 149.7%, and the loan-to-deposit ratio was 94.8%.

Challenges

Hisham Abdullah Al Qasim, Vice Chairman and Managing Director of Emirates NBD Group, said, "Emirates NBD managed to achieve a net profit of 2.1 billion dirhams for the first quarter of 2020, and enhance its balance sheet."

He added: «In light of the unprecedented challenges that the global economy and the banking sector are experiencing as a result of the pandemic (Covid-19), we continue to provide our full support to the efforts made by the government of the UAE and the central bank, to take precautionary measures unprecedented and represented in the application of preventive measures to protect Health and safety of the country's population, and the provision of a comprehensive economic support plan to support customers ».

155 profits of «Emirates Islamic»

Emirates Islamic Bank announced yesterday its financial results for the quarter ended March 31, 2020, achieving a net profit of 155 million dirhams, for the first quarter of this year.

The total income of the bank reached 641 million dirhams, down by 3%, compared to the same period last year, while the funded income margins decreased by 10 basis points, compared to the same period in 2019, due to the decline in profit rates.

467

One billion dirhams, the value of deposits in the bank by the end of the first quarter 2020.