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Dubai: The two largest banks in the UAE announced on Wednesday a decrease in their profits last year after they allocated huge funds to confront the repercussions of the emerging Corona virus crisis on the economy of the wealthy Gulf state.
Emirates NBD, the largest bank in Dubai, reported that its net profit fell by 52 percent to $ 1.9 billion, compared to $ 3.9 billion in 2019.
The bank, the second largest bank in the United Arab Emirates, added that it had allocated $ 2.15 billion in compensation for the potential risks from the Coronavirus pandemic, an increase of 65 percent from the previous year.
Chairman Sheikh Ahmed bin Saeed Al Maktoum said, “Emirates NBD achieved a net profit of 7 billion dirhams ($ 1.9 billion) in 2020 despite the global epidemic that has caused great disruption to individuals, communities and companies.”
In the UAE capital, First Abu Dhabi Bank, the country’s largest bank, announced on Tuesday that it achieved profits of $ 2.9 billion last year, down from $ 3.4 billion in 2019.
The bank said the decline was caused by the global economic turmoil caused by the emerging coronavirus pandemic, low interest rates and market volatility.