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A prosperous year

Emirates NBD delivered a profit last year, despite the tough economic situation

Emirates NBD, a leading banking group in the region, delivered a net profit of Dh7 billion in 2020 despite a challenging operating environment. Total income increased 4 per cent as the positive contribution from DenizBank helped offset a decline in net interest margin due to lower interest rates and a reduction in non-funded income. Emirates NBD provided support to over 103,000 customers in the UAE and provided assistance to many customers in the other geographies in which the bank operates. Emirates NBD further enhanced its digital products and services as an increasing number of customers embraced this secure and convenient way of banking. The group's balance sheet remains healthy with strong capital, liquidity and impaired loan coverage ratios. These results have enabled the Board of Directors to recommend a 2020 dividend of 40 fils per share.

Outlook

Following a strict lockdown during the second quarter of 2020, the UAE Government's clear guidelines enabled the UAE economy to re-open in the second half of 2020. Emirates NBD's Research team forecasts that the UAE economy contracted by 6.9 per cent in 2020, as both oil and non-oil sectors were impacted by the pandemic.  However,  Emirates NBD Research expects real GDP growth for 2021 to recover to 3 per cent in Dubai and 1.9 per cent in the UAE, with the non-oil sector expected to grow by 3.5 per cent. Economic growth is also expected to return to other countries where Emirates NBD has a presence.  

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