Brace yourselves because it’s going to be a nail-biting week for banks not just across MENA but around the world as 2020 financial sheets are unveiled.
Dubai’s biggest lender, Emirates NBD group, saw its full-year profits cut down in half compared to the same period in 2019. Its subsidiary, Emirates Islamic, reported a net loss of Dh482m.
Banks around the globe were forced to up their provisions (funds that are set aside as assets in order to pay for potential future losses) in order to deal with the negative impacts of the coronavirus pandemic. While ENBD’s and FAB’s results were better than expected (considering the circumstances), the economic impact of the pandemic paired with the slump in oil prices is still going to be heavily felt this year.
On a more positive note, ENDB’s shares rose as much as 2.2% despite the news.