Dubai top lender Emirates NBD full-year profit slumps 52%

DUBAI: Dubai's biggest bank Emirates NBD reported on Wednesday a 52% dive in full-year net profit as provisions for bad loans rose and earnings suffered in comparison with the previous year, when they were helped by an asset sale.

Net profit for the year fell to 6.97 billion dirhams ($1.9 billion) from 14.5 billion dirhams in 2019 when the lender sold a stake in payments processor Network International.

Analysts had expected a net profit of 6.47 billion dirhams, according to Refinitiv data.

Emirates NBD said impairment allowances jumped 65% to 8 billion dirhams from the previous year.

The bank's research team has forecast the United Arab Emirates economy contracted 6.9% last year, as both oil and non-oil sectors are affected by the COVID-19 pandemic. It expects the economy to grow by 1.9% this year, with Dubai likely to expand by 3%.

The UAE's biggest lender, First Abu Dhabi Bank, on Tuesday posted a 16% drop in 2020 net profit on higher impairment charges.