The board of directors recommends distributing 40 fils per share
7 billion dirhams, the net profit of Emirates NBD Group during 2020
Hisham Abdullah Al-Qassem: “The bank, with its strong balance sheet and ability to achieve operational profits, has successfully dealt with the exceptional and unexpected challenges of 2020.”
Emirates NBD has postponed payments for 103,000 customers in the UAE.
Photography: Mustafa Qasimi
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Emirates NBD, the leading banking group in the region, has announced a net profit of 7 billion dirhams in 2020, despite a challenging operating environment.
Total income increased by 4%, compared to the same period of the previous year, as the positive contribution of Denizbank compensated for the decrease in the net interest margin, against the background of lower interest rates and a decrease in unfunded income.
In a statement issued yesterday, the bank confirmed that it provided its support in postponing payments to more than 103,000 customers in the UAE, as well as assisting many customers in other geographical areas in which it operates.
The group's balance sheet continues to maintain its healthy position, with strong liquidity ratios, capital ratios and low loan coverage ratios.
These results allowed the Board of Directors to recommend a dividend for the year 2020, at 40 fils per share.
Gross income
Total income reached 23.2 billion dirhams, up 4%, compared to the same period of the previous year, as a result of growth in loans, including DenizBank.
Net profits reached 7 billion dirhams, down by 52%, compared to the same period of the previous year, as a result of the increase in the volume of provisions and profits resulting from the exit of a stake in "Network International", which was not repeated in 2020. With the exception of the profits resulting from the "Network" deal. International »In 2019, net profit decreased by 31%, compared to the same period of the previous year.
Impairment provisions increased to reach AED 7.9 billion, to reflect the weak credit environment as a result of the "Covid-19" pandemic, with a net cost of risk by 163 basis points, in addition to a decrease in net interest margin by 24 basis points, compared to the same period of the previous year, to reach 2.65%, as a result of the decline in base interest rates in the first half of 2020.
Total assets increased by 2% from 2019, to reach 698 billion dirhams, and customer loans increased by 1% from 2019, to reach 444 billion dirhams.
Customer deposits decreased by 2% from 2019, to reach AED 464 billion.
While the Impaired Loan Ratio increased by 0.6%, to reach 6.2% in 2020, while the coverage ratio remained strong at 117.3%.
Net profit
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD, said: “Emirates NBD managed to achieve a net profit of 7 billion dirhams in 2020, despite the global pandemic that caused major unrest and instability. For individuals, communities and companies ».
His Highness added that “the rapid and decisive response measures taken by our wise leadership in the UAE to protect the health and safety of the population, by issuing clear and thoughtful guidelines, made it possible to successfully reopen the economy in the country in the second half of the year.
The comprehensive and targeted economic support plan launched by the Central Bank had a significant impact in assisting and supporting clients and banks in these difficult times.
His Highness continued: “I am proud of the role that Emirates NBD has played in supporting customers and the economy by providing financial assistance, in addition to actively participating in community initiatives.
We continue to support the economy of the United Arab Emirates, which celebrates with pride its golden jubilee in 2021, and it is our pleasure to be an integral part of the development and prosperity of the country over the next fifty years.
As the official banking partner of Expo 2020 Dubai, we look forward to playing the role entrusted to us to highlight the culture of innovation, tolerance and pride inherent in the United Arab Emirates, while welcoming participating delegations and visitors from around the world.
In light of the bank’s performance, we propose to distribute cash dividends of 40 fils per share. ”
balance sheet
Emirates NBD Vice Chairman and Managing Director of Emirates NBD Group, Hisham Abdullah Al Qassim, said: “Emirates NBD, with its strong balance sheet and continuous ability to achieve operational profits, has successfully dealt with the exceptional and unexpected challenges in 2020, achieving net profits of up to Seven billion dirhams, and a growth in total assets to 698 billion dirhams.
For his part, Chief Executive Officer of Emirates NBD Group, Shane Nelson, said: “Emirates NBD managed to achieve a 1% growth in operating profits, ahead of impairment provisions in 2020, despite the challenging operating environment.
Net interest income also increased by 8%, as a result of the Denizbank contribution, which compensated for the decrease in margins on the back of lower interest rates.
Operating profits fell by 29%, due to lower interest rates and the volume of transactions, in addition to higher provisions for impairment.
Ahmed bin Saeed:
• «Proud of the role played by the bank in supporting customers and the economy, through the provision of financial assistance, and active participation in community initiatives».
• «We continue to support the economy of the UAE, which celebrates, with pride, its golden jubilee in 2021.»
2.1 billion dirhams total income of Emirates Islamic
Emirates Islamic recorded a net loss of 482 million dirhams in 2020, mainly due to the high volume of provisions in the financing and investment activities book.
The total income of 2.1 billion dirhams decreased by 22% during the year, due to the decrease in income from receivables from financing and investment activities, and the decrease in fee and commission income, as a result of the slowdown in economic activity due to the "Covid-19" pandemic.
Emirates Islamic successfully completed the process of issuing a record Sukuk amounting to 1.8 billion dirhams during 2020.
Emirates Islamic’s total assets reached AED 70.6 billion by the end of 2020. Accounts receivable for financing and investment increased by 9%, to reach 40.8 billion dirhams, during the same year, and customer deposits grew by 3%, to reach 46.9 billion dirhams.
In Emirates Islamic, current account balances and savings accounts represent 69% of total customer accounts.
Funding to deposits ratio remained stable at 87% in line with management directives.
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