Emirates NBD first-quarter profit dives 24% as coronavirus-led impairments surge - Reuters:
Dubai’s largest lender Emirates NBD (ENBD.DU) said on Monday its first-quarter net profit declined 24% on-year due to higher provisions the bank took in anticipation of the impact of the coronavirus outbreak on credit conditions.
The bank posted a net profit of 2.08 billion dirhams ($566 million) in the quarter, down from 2.74 billion dirhams in the same period a year earlier. On a quarterly basis, however, the lender’s net profit improved by 3%.
“Net operating profit declined 24% y-o-y as the group took additional impairment allowances to increase coverage in anticipation of a deterioration in credit quality in subsequent quarters,” Patrick Sullivan, the group chief financial officer, said in a statement.
Banks in the United Arab Emirates are feeling the impact of tough containment measures aimed at tackling the pandemic, which also brought parts of the economy to a near halt.
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