Emirates NBD net profit decreased by 45% to reach 4.1 billion dirhams in the first half of 2020.
According to Al-Bayan, the decrease in net profits was due to higher fees for provisions for impairment and profits resulting from exiting from a stake in Network International which was not repeated in the year 2020. < / p>
Net interest income increased by 36% compared to the same period in the previous year and the unfunded income witnessed a growth of 24% compared to the same period in the previous year with the acquisition of Denizbank in Year 2019.
Excluding profits from Network International's deal, net profit decreased by 24%. The group's balance sheet continues to maintain its strong position, good liquidity, credit quality and capital ratios. The group also raised provisions for impairment to cover phases 1 and 2 to acknowledge the possible decline in credit quality during subsequent quarters and arising from the Covid 19 pandemic.
Financial Highlights
Total income amounted to 12.6 billion dirhams, up 33% compared to the same period in the previous year, as a result of loan growth and higher fee income, including Denizbank.
Net profits amounted to 4.1 billion dirhams, down by 45% compared to the same period in the previous year due to the high volume of provisions and profits resulting from exiting from a stake in Network International, which did not Repeat in 2020. Excluding profits from the Network International deal in the second quarter of 2019, net profit decreased by 24%.
The impairment provisions increased to 4.2 billion dirhams, with an increase in the net cost of risks to 172 basis points annually as a result of the group increasing the coverage of phases 1 and 2 of the provisions coverage Expected credit losses.
Net Interest Margin improved by 7 basis points compared to the same period of the previous year to reach 2.84%, supported by the positive impact of Denizbank.
Total assets increased by 2% compared to the end of 2019 to reach 694 billion dirhams, and customer loans increased by 1% compared to the end of 2019 to reach 443 billion dirhams .
Customer deposits recorded a decrease of 2% compared to the end of the year 2019 to reach 461 billion dirhams, while the proportion of low-value loans rose to 5.8%, while the coverage ratio remained strong...
