Emirates NBD repays $816m to UAE gov't

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Emirates NBD, Dubai's largest lender, repaid in April AED3bn ($816.8m) of support from the UAE government which it had received in the wake of the global financial crisis, it said on Thursday.

The UAE ministry of finance injected AED70bn into the banks to shore up balance sheets after the collapse of Lehman Brothers in September 2008 triggered a crisis in the world's financial system.

ENBD received AED12.6bn in total and said in January it was looking to begin repaying the debt, which was converted into capital-boosting bonds in late 2009, since the value of the instruments had diminished and access to finance from the market had become cheaper.

A number of other UAE banks have also made repayments of the support so far in 2013, including National Bank of Abu Dhabi and First Gulf Bank.

Earlier on Thursday, Emirates NBD said its first-quarter net profit rose 31 percent on the back of lower impairments, beating the average forecast of analysts.

The lender, 55.6 percent owned by state fund Investment Corp of Dubai, made a net profit of AED837m ($227.9m) in the three months to March 31, compared to AED641m in the same period last year.

An average of three analysts polled by Reuters had forecast a net profit of AED676m.

Related:
Companies

Market Performance

Emirates NBD
8.8
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Beating state debt addiction proves hard for UAE banks

Beating state debt addiction proves hard for UAE banks

Banks' exposure to the public sector as a percentage of capital...

MidEast boutiques seek to become fashionable M&A choice

MidEast boutiques seek to become fashionable M&A choice

Number of such firms in the Middle East is growing, centred on...

Saudi money market turmoil shows bank jitters over bond issues

Saudi money market turmoil shows bank jitters over bond issues

Money market moves show concern about Saudi banks' ability to...

Most Popular
Most Discussed