Emirates NBD, Dubai's biggest lender by assets, reported a 61 per cent surge in third-quarter net profit as impairment losses dropped and the UAE's economy continued to make a strong recovery from the coronavirus-induced slowdown.
Net profit attributable to equity holders of the group for the three months to the end of September climbed to Dh2.5 billion ($682 million), the lender said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded.
Net interest income from Islamic financing and investment products jumped 98 per cent to Dh706.4m while net impairment losses on financial products declined 48 per cent to Dh1.1bn.
“Emirates NBD’s growth in income and profitability in the third quarter of 2021 is a clear sign of improving economic conditions within the region,” said Hesham Al Qassim, vice chairman and managing director of Emirates NBD.
“The UAE economy has fully reopened, thanks to the successful handling of the pandemic ... and [the bank] is well positioned to benefit from the expected growth in international travel.”
The country’s economy is expected to grow 3.1 per cent in 2021, according to the International Monetary Fund. That is higher than the UAE Central Bank's growth estimates of 2.1 per cent this year and 4.2 per cent in 2022.
General and administrative expenses in the third quarter climbed 8 per cent to Dh1.95bn while net fee and commission income dropped during the period.
Emirates NBD's nine-month net profit grew 29 per cent to Dh7.3bn as the net impairment loss on financial assets dropped 42 per cent to Dh3.7bn.
Customer deposits stood at Dh389.4bn at the end of the third quarter, up 3 per cent from Dh377.5bn at the end of December last year. Total assets remained stable at Dh699bn.
“The outlook for the UAE economy is positive, with Expo 2020 Dubai predicted to boost domestic demand and the easing of travel restrictions in key markets expected to support the recovery in tourism and hospitality,” Emirates NBD said, citing its outlook for the Arab world’s second-largest economy.
The bank expects the country's non-oil economy to grow by 3.5 per cent this year. It raised its GDP growth forecast to 1.9 per cent, from 1.5 per cent, on expectations that higher oil production could bode well for the economy.
Saudi Arabia’s economy is also expected to benefit from increased oil output in the coming months and GDP is forecast to grow by 2.5 per cent in 2021, according to the lender.
Higher oil prices will help reduce the budget deficit of the kingdom to only 1.1 per cent of GDP this year, it said.
Emirates NBD also received regulatory approval to expand its network in India with two more branches in Gurugram and Chennai this year.
"The diversified balance sheet and the solid capital base remain a core strength of the group," said Shayne Nelson, group chief executive of Emirates NBD.
"We are using this strength to support our customers, empowering them to benefit from the growing economy as Expo 2020 Dubai begins."
In addition to India and the UAE, Emirates NBD also operates in Egypt, Turkey, Saudi Arabia, Singapore, the UK, Austria, Germany, Bahrain and Russia, and has representative offices in China and Indonesia.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Sri Lanka-India Test series schedule
1st Test July 26-30 in Galle
2nd Test August 3-7 in Colombo
3rd Test August 12-16 in Pallekele
UAE currency: the story behind the money in your pockets
Company%20Profile
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Secret Pigeon Service: Operation Colomba, Resistance and the Struggle to Liberate Europe
Gordon Corera, Harper Collins
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Mohammed bin Zayed Majlis
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
