#Dubai's Emirates NBD full year profit plunges 52%; board recommends dividend | ZAWYA MENA Edition

Dubai's Emirates NBD full year profit plunges 52%; board recommends dividend | ZAWYA MENA Edition

Dubai's biggest bank Emirates NBD reported a 52 percent plunge in full-year net profit due to a rise in provisions for bad loans and no repeat of the gain on disposal of Network International shares in 2019.

Net profit for the year fell to 6.97 billion dirhams ($1.9 billion) from 14.5 billion dirhams in 2019 when Emirates NBD sold a stake in payments processor Network International. The board of Emirates NBD has recommended a dividend of 40 fils per share.

The bank's impairment allowances increased to 7.9 billion dirhams reflecting weaker credit environment impact of COVID-19 with net cost of risk at 163 bps. Net interest margin declined 24 bps y-o-y to 2.65 percent following cuts in base interest rates in the first half of 2020.

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “Emirates NBD delivered a net profit of 7 billion dirhams in 2020 despite the global pandemic that caused major disruption to individuals, communities and businesses. As the official banking partner of Expo 2020 Dubai, we look forward to helping showcase the UAE’s innovative, tolerant and proud culture as we welcome the world to the UAE. In light of the Bank’s performance, we are proposing a cash dividend at 40 fils per share.”