Emirates NBD's 2021 profit up 34%, says in better shape for higher rates | Reuters

Emirates NBD's 2021 profit up 34%, says in better shape for higher rates | Reuters

Emirates NBD's (ENBD.DU) annual profit rose 34% as improved economic activity boosted investment banking income, Dubai's biggest lender said on Wednesday, while impairment fell sharply from the height of the pandemic.

The lender also boosted its dividend by 25% to 0.50 dirhams per share and said it was in a good shape to navigate rising interest rates amid a better funding mix.

"The funding mix improved as we added a further 38 billion dirhams ($10.35 billion) of current accounts and saving account balances during 2021 and we are well positioned to benefit from a potential rise in interest rates," Group CEO Shayne Nelson said in a statement.

Banks in the United Arab Emirates are benefiting from an uptick in economic activity as the effects of the pandemic are easing amid government support, higher oil prices and strong tourism due to the world fair Expo in Dubai.