Emirates NBD posts 45% dip in net profit for H1 2020

Emirates NBD posts 45% dip in net profit for H1 2020

Dubai's Emirates NBD recorded net profit worth Dhs4.1bn for the first half of 2020, 45 per cent down year-on-year from Dhs7.48bn for H1 2019.

The decline in net profit was driven by higher provisions and no repeat of the gain on disposal of Network International shares in 2019, it announced on July 20.

Excluding the gain from Network International, the bank's net profit was down 24 per cent.

Meanwhile, total income for the first half of 2020 amounted to Dhs12.6bn, marking an increase of 33 per cent compared to Dhs9.5bn during the same period in 2019.

Net interest income worth Dhs9.3bn improved 36 per cent year-on-year in H1 2020 from Dhs6.8bn in H1 2019, supported by loan growth and higher margins from DenizBank.

Costs for the first half of 2020 amounted to Dhs3.9bn, an increase of 42 per cent year-on-year from Dhs2.8bn in the comparable period in 2019, with the inclusion of DenizBank. However, costs improved 1 per cent year-on-year excluding DenizBank.

Also, the cost-to-income ratio at 31.7 per cent is expected to increase in H2 2020, towards the 33 per cent management guidance.

During the first half of 2020, the non-performing loan ratio also increased to 5.8 per cent.

Customer loans at Dhs442.9bn, grew 1 per cent from