Emirates NBD profits up by almost 60 per cent

19 January 2015

Dubai-based bank improves impaired loan ratio in 2014

Emirates NBD has reported net profits of AED5.1bn ($1.39bn) for full-year 2014, an increase of 58 per cent compared with 2013.

Total income for the year grew by 22 per cent to reach AED14.4bn.

The bank’s balance sheet improved last year due to its improved impaired loan ratio, which fell to 7.8 per cent.

This improvement was achieved as a result of the reclassification of its Dubai World exposure, the writing off of some retail loans, and increased recoveries and repayments caused as a result of an improving economy.

“In light of the continued positive news on Dubai World, the bank was able to reclassify this exposure as performing. This helped us reach our 100 per cent target coverage ratio for impaired loans,” Hesham Abdulla al-Qassim, vice-chairman at Emirates NBD said in an official statement.

Dubai World continues to be in negotiations with creditors about a restructuring of its debt, which could see its 2015 obligation repaid early and an extension granted on the $10bn due in 2018.

Emirates NBD was hit hard by the financial crisis of 2008-09 when large local conglomerates, particularly Dubai World and Dubai Holding, started stalling their debt repayments.

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