Dubai’s largest bank sees profit plunge over pandemic impact

DUBAI (AFP) – Emirates NBD, Dubai’s largest bank, said yesterday its net profits plunged in the second quarter as it made huge provisions to counter the potential impact of the coronavirus crisis.

The United Arab Emirates’ (UAE) second-largest lender saw its net profit in the second quarter this year dive by 58 per cent to USD545 million from USD1.3 billion a year ago.

Its net profit in the six months ending June 2020 also slumped by 45.3 per cent to USD1.1 billion from USD2 billion the same period last year, it said in a statement. The bank said it has set aside USD1.14 billion in impairments for potential risks from the coronavirus pandemic.

“The Group increased impairment allowances… in anticipation of a potential deterioration in credit quality in subsequent quarters related to the coronavirus pandemic,” it said.

CEO Shayne Nelson said the bank provided support to one-tenth of customers primarily through the deferral of over USD2.2 billion of interest and principal for periods of up to six months.