Dubai – Mubasher: Emirates NBD registered a net profit of AED 2.1 billion over the first quarter (Q1) ending on 31 March 2020, posting a 3% quarter-on-quarter (QoQ) increase.

Year-on-year (YoY), net interest income leaped by 45% in Q1-20 while non-interest income grew by 48% following the acquisition of DenizBank in 2019.

The lender’s net profit declined by 24% YoY in Q1-20, driven by higher impairment charges. The group’s balance sheet remains strong with healthy liquidity, credit quality, and capital ratios, according to a press release on Monday.

Whilst credit quality was stable in Q1-20, the group increased impairment allowances for Stage 1 and 2 coverage in the context of a potential deterioration in credit quality in subsequent quarters related to the coronavirus (COVID-19) pandemic.

Moreover, the total assets of the lender stood at AED 692 billion in Q1-20, up by 1% from 2019 year-end. Total income amounted to AED 6.9 billion, up by 46% YoY due to loan growth and higher fee income, including DenizBank.

In this regard, vice chairman and managing director of Emirates NBD, Hesham Abdulla Al Qassim, said: “As the global economy and the banking industry face unprecedented challenges due to COVID-19, we remain fully supportive of the UAE Government and the UAE Central Bank’s swift and unprecedented actions in introducing measures to protect the health of UAE residents and to provide economic relief measures to support customers.”

Meanwhile, the group CEO, Shayne Nelson, added: “During these uncertain times, we have aimed to ensure that we continue to provide customers with uninterrupted banking services and the bank’s balance sheet remains solid… The bank’s leading digital platform is invaluable in providing a secure, convenient, and safe environment.”

It is noteworthy that Emirates NBD enjoys a good underlying operating performance, coupled with a robust balance sheet that can help in navigating the multiple challenges faced by regional banks, such as low-interest rates, low oil prices, and lower economic growth due to disruption from COVID-19.