Emirates NBD profits jump in 2021 as economy rebounds

DUBAI (AFP): Dubai’s largest bank, Emirates NBD, announced on Wednesday that its net profits jumped in 2021, as the economy of the Gulf city state rebounded following a slump due to coronavirus.

The bank, the second largest lender in the United Arab Emirates, said its net profits rose 34% to $ 2.5 billion from $ 1.9 billion in 2020.

It said, in a company statement, that the bank has set aside $ 1.6 billion in impairments, covering loan losses, a 26% decrease from last year, due to improving economic conditions.

“Emirates NBD’s profits grew 34% in 2021, demonstrating the resilience of the Group’s diversified business model,” said Chairman Sheikh Ahmed bin Saeed Al-Maktoum.

“Emirates NBD continued financing the real economy and was rewarded as economic growth rebounded, helped by Government economic stimulus packages.” 

The bank said total income increased 3% to $ 6.5 billion from $ 6.3 billion a year earlier, “as higher retail volumes offset the impact of low interest rates.”

The UAE’s Central Bank said in 2020 that it had doubled to a $ 70 billion stimulus package aimed at supporting the economy and domestic banks in the face of COVID-19.