Biggest Dubai Bank More Than Doubles Provisions; Profit Dips
- Emirates NBD raises impairments to 6.4 billion dirhams
- S&P warned Gulf banks face long period of lower profitability
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Emirates NBD PJSC braced for credit losses by more than doubling the amount of money set aside in provisions amid the coronavirus pandemic as it reported a 55% slump in its nine-month profit.
Dubai’s biggest bank increased impairment allowances more than anticipated by some analysts, bringing the total to 6.4 billion dirhams ($1.7 billion), according to a statement on Tuesday. Profit dropped to 5.6 billion dirhams on higher impairments and as a gain from last year’s sale of a stake in Network International Holdings Plc wasn’t repeated.