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Emirates NBD Q2 profit slumps 58% as pandemic impairments spike

Credit: REUTERS/SATISH KUMAR

Dubai's largest bank Emirates NBD on Monday reported a 58% fall in second-quarter profit with the lender taking higher provisions in anticipation of further impact from the coronavirus pandemic on credit conditions.

DUBAI, July 20 (Reuters) - Dubai's largest bank Emirates NBD ENBD.DU on Monday reported a 58% fall in second-quarter profit with the lender taking higher provisions in anticipation of further impact from the coronavirus pandemic on credit conditions.

The bank made a net profit of 2 billion dirhams ($544.54 million) in the three months ended June 30, compared with a 4.74 billion dirhams last year when it booked a gain of 2.1 bln dirhams from an asset sale.

Emirates NBD said in a statement its impairment allowances increased to 4.2 billion dirhams by June-end, up from 2.6 billion in the first quarter of the year, with an annualised net cost of risk of 172 basis points.

($1 = 3.6728 UAE dirham)

(Reporting by Alexander Cornwell, Editing by Sherry Jacob-Phillips)

((Alexander.Cornwell@thomsonreuters.com;))

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