Dubai largest bank say net profits jumped in 2021 as economy rebounded

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.