Emirates NBD expects loan growth of 5 to 7 per cent this year as the Dubai economy continues to expand, despite the oil price drop.
Loans at the bank, Dubai’s biggest by assets, grew 3 per cent to Dh246 billion last year from 2013. Net profit increased 58 per cent to Dh5bn.
“If we have a good year this year with no new problem loan formation, we should have a very profitable year this year,” said the bank’s chief executive Shayne Nelson. “The driver for profitability this year is going to be around what we charge off bad debts.”
Emirates NBD’s optimism is in contrast to analysts’ forecasts for the UAE banking sector as a whole.
For the five UAE banks rated by Standard & Poor’s – a group that does not include Emirates NBD – the agency predicts profit growth of 5 to 6 per cent this year, versus 21.3 per cent last year, with cheaper oil as a prime reason.
Emirates NBD's impaired loan ratio dropped last year to 7.8 per cent from 13.9 per cent in 2013 after reclassifying Dubai World debt exposure as performing. State-owned Dubai World has won unanimous creditor approval to repay some of its loans ahead of schedule and extend payments for another chunk of debt. Emirates NBD had the biggest exposure among financial institutions to Dubai World, Mr Nelson said.
The oil price slump is unlikely to have a big effect on the bank because most of the bank’s operations are in Dubai, which has a diverse economy and is forecast to have GDP growth of about 4.5 per cent this year.
UAE growth will range between 4 and 4.5 per cent, according to the economy minister Sultan Al Mansouri.
"Given our concentration on Dubai, and its very little reliance on oil, we expect good growth for the bank and the banking industry as a whole," said Mr Nelson.
But the oil price slump could hit liquidity. Money supply growth slowed to 9.2 per cent in December from 11.6 per cent the previous month, Central Bank data show.
The central bank’s numbers also showed that lending growth in the UAE slowed at year’s end, to 9.5 per cent year on year in December from 10.2 per cent in November.
“One of the issues always with low oil prices is going to be liquidity, and I think certainly banks are going to have to be careful about managing their liquidity and loan growth in conjunction with that liquidity,” said Mr Nelson.
“I think banks are far more prudent. The positioning of the banking industry is much stronger than it was before the banking crisis, and if you look at liquidity management of banks in the UAE has improved dramatically.”
dalsaadi@thenational.ae
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
On sale: now
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
UAE currency: the story behind the money in your pockets
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