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23 February 2024

ENBD net profit declines nine per cent

By Shveta Pathak
Emirates NBD's net profit is down nine per cent to Dh3.3billion in 2009 due to credit impairment allowances and “impact from investment in associates”, the bank said in its statement on annual results on the Dubai Financial Market (DFM)website.

The bank said its Board of Directors will recommend a 20 per cent cash dividend for the 2009 financial year to shareholders at the annual general meeting.

Operating profit before impairment allowances for the year was up 42 per cent to Dh7.2billion whereas total income also showed a 28 per cent increase compared to 2008.

Middle East’s largest bank by assets, ENBD saw its NPL ratio rise to 2.36 per cent in the fourth quarter from 1.8 per cent in the third quarter of 2009. The NPL ratio in 2008 was 0.95 per cent.

Rick Pudner, Chief Executive Officer, ENBD, said: “While the operating environment during 2009 has been challenging , we have delivered a robust financial performance. Revenue growth for the year has been strong due to the broad strength of our business. At the same time, we have continued to realize cost efficiencies resulting from ongoing rationalization and the integration process.”

Total income for 2009 increased to Dh10.8billion compared to Dh8.5billion in 2008. The bank saw its net interest income increase to Dh 7.4 million for the full year compared to previous year whereas non-interest income recorded an improvement of 31 per cent.

The bank said the increase in NPL ratio was in line with expectations. Rise in costs during the year was only eight per cent from 2008 whereas income growth was 28 per cent, the bank announced.

Customer loans reached Dh214.6billion, an increase of 2.7 per cent while deposits were Dh181.2billion, a rise of 11.6 per cent over 2008.