Dubai – Mubasher: Emirates NBD saw AED 4.09 billion net profits during the first half (H1) of 2020, down 45% from AED 7.48 billion during the same half of 2019, according to the bank's financial results for the period ended on 30 June 2020.
The drop in net profits is driven by an increase in impairment charges and the gain on disposal of a stake in Network International not repeated in 2020.
Meanwhile, the bank's net interest income jumped by 36% year-on-year (YoY) to AED 9.3 billion in the first six months of 2020 from AED 6.85 billion during the corresponding period of 2019.
The lender's total asset increased by 29% to AED 694.3 billion in H1 of 2020, compared to AED 537.8 billion in the same half of 2019.
The adjusted earnings per share (EPS) stood at AED 0.60 in the January-June period this year, versus AED 0.91 in the same period of 2019.
Despite the decrease in net profits, the group's balance sheet remains strong with healthy liquidity, credit quality, and capital ratios, according to the bank's statement.
At the same time, the bank increased impairment allowances for Stage 1 and 2 due to a potential deterioration in credit quality in subsequent quarters amid the coronavirus (COVID-19) pandemic.
Commenting on the bank's performance amid COVID-19, the Group CEO, Shayne Nelson, said: "We proactively reached out to our customer base and support has now been provided to approximately one-tenth of our customers primarily through the deferral of over eight billion dirhams of interest and principal for periods of up to six months."
At the same time, the Group Chief Financial Officer, Patrick Sullivan, remarked: "We are acting to manage costs to reflect lower levels of economic activity, albeit cost reduction will not entirely offset lower levels of income."
It is noteworthy to mention that in the first quarter (Q1) of the year, the bank's net profits increased by 24% YoY driven by higher impairment charges, when compared to the same quarter of 2019.
