Dubai’s largest bank, Emirates NBD, announced Wednesday that its net profits jumped in 2021, as the economy of the Gulf city state rebounded following a slump due to coronavirus.
The bank, the second largest lender in the United Arab Emirates, said its net profits rose 34 percent to $2.5 billion, from $1.9 billion in 2020.
It said in a company statement that the bank has set aside $1.6 billion in impairments, covering loan losses, a 26-percent decrease from last year, due to improving economic conditions.
“Emirates NBD’s profits grew 34% in 2021 demonstrating the resilience of the Group’s diversified business model,” said chairman Sheikh Ahmed bin Saeed Al-Maktoum.
“Emirates NBD continued financing the real economy and was rewarded as economic growth rebounded, helped by government economic stimulus packages.”
The bank said total income increased three percent to $6.5 billion, from $6.3 billion a year earlier, “as higher retail volumes offset the impact of low interest rates”.
The UAE’s central bank said in 2020 that it had doubled to $70 billion a stimulus package aimed at supporting the economy and domestic banks in the face of Covid-19.