Emirates NBD net profit jumps 34% to Dh9.3 billion

Dubai’s largest bank Emirates NBD’s net profit jumped 34 per cent to Dh9.3 billion in 2021 on the back of higher total income and decreased impairment allowances.

In light of the group’s strong performance, the bank’s board proposed a 25 per cent increase in the cash dividend to 50 fils per share.

The lender’s total assets were down two per cent at Dh687 billion due to currency translation. Its impairment allowances stood at Dh5.9 billion at the end of December 31, 2021, as against Dh7.9 billion in the previous year, while operating expenses stood at Dh8.0 billion.

Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Emirates NBD, said the bank continued financing the real economy and was rewarded as economic growth rebounded, helped by government economic stimulus packages and the successful handling of the pandemic by the country.

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Hesham Abdulla Al Qassim, vice-chairman and managing director of Emirates NBD, said the strong economic recovery drove record demand for retail financing.

“The diversified balance sheet and the solid capital base remains a core strength of the Group. We used this strength to support clients in 2021, empowering them to be part of the economic recovery. With 98 per cent of transactions now through digital channels, we continue to be a leader in digital banking and innovation.”

Shayne Nelson, Group CEO of Emirates NBD, said there rise in income despite low-interest rates, coupled with an improvement in the cost of risk to pre-pandemic levels, helped deliver strong profit.

“International operations contributed 38 per cent of total income in 2021. The funding mix improved as we added a further Dh38 billion of current accounts and saving account balances during 2021 and we are well-positioned to benefit from a potential rise in interest rates. We continue to maintain strict control on expenses and have headroom to invest in advanced analytics, enabling us to leverage further from our digital transformation. The balance sheet remains rock solid with sound capital, liquidity and credit quality.”

- waheedabbas@khaleejtimes.com

• Dubai