Emirates NBD announced yesterday that it achieved a net profit of 4.1 billion dirhams for the first half of this year, down by 45% compared to the same period last year, due to the increase in the size of provisions and profits resulting from exiting from a share in «Network International», which Not repeated in 2020.
The bank said in a statement, that the total income amounted to 12.6 billion dirhams, an increase of 33% compared to the same period in 2019 as a result of loan growth and higher fee income, including «Denizbank», while provisions for impairment increased to 4.2 billion dirhams, with an increase In the net cost of risk to reach 172 basis points annually.
Total assets increased by 2% compared to the end of last year, to reach 694 billion dirhams, while customer loans increased by 1% compared to the end of 2019 to 443 billion dirhams, while customer deposits decreased by 2% compared to the end of last year to reach 461 billion Dirham.
The percentage of low-value loans increased to 5.8%, while the coverage ratio remained strong at 116.9%.
The liquidity coverage rate was 152.5%, and the loan-to-deposit ratio was 96.1%, which indicates the proper state of liquidity, while the first tier ratio of ordinary shares was 15.3%, which is 7% higher than the minimum requirements.
Hisham Abdullah Al Qasim, Vice Chairman and Managing Director of the Emirates NBD Group, said, "The bank was able to achieve a net profit of 4.1 billion dirhams for the first half of 2020, and to maintain the strength of its balance sheet."
“We are pleased with the efforts made by Emirates NBD to help the affected clients,” he added.
He explained that «the economic improvement is reflected by the rise in the purchasing managers’ indicators in the UAE to reach 50.4 points in June, which is the first reading that indicates an improvement during the current year ».
In turn, the CEO of Emirates NBD Group, Shane Nelson, said that, "In light of these exceptional circumstances, we have placed in the bank the safety of our customers and employees on our list of priorities, and we have also been able to proactively continue to provide support to our customer base, to include until now about ten Our customers, which was represented primarily by postponing the payment of more than eight billion dirhams of interest and principal amounts for periods of up to six months.
12 million dirhams profits «Emirates Islamic»
Emirates Islamic Bank achieved a net profit of 12 million dirhams during the first half of 2020, while the total income of the bank reached 1.1 billion dirhams, down by 15% compared to the same period last year, and the funded income margins decreased by 25 basis points, due to lower rates Profit.
Total assets reached 64.2 billion dirhams, down 1% from the end of 2019, while net financing and investment activities receivable reached 40.4 billion dirhams, up 8% from the end of last year.
The balances of current and savings accounts increased 10% from the end of 2019, while the proportion of low-value funds was 8.2%, while maintaining a coverage ratio of 103.2%.