By Gavin Gibbon
Dubai's largest bank earlier reported a 45% slump in first-half profits
Emirates NBD has received approvals to double its foreign ownership limit (FOL) from 20 percent to 40 percent.
In a note to the Dubai Financial Market (DFM) the emirate’s biggest bank revealed that “all necessary regulatory and internal approvals” to increase its FOL had been received.
“The bank has contacted Dubai Central Securities Depository to start the necessary procedures to activate the above mentioned increase in the Foreign Ownership Limit,” the statement said.
In September last year Emirates NBD raised the cap on foreign ownership from five percent to 20 percent.
Earlier this week, the bank reported that first-half profits had slumped 45 percent after it set aside $1.1 billion in provisions to cover an expected spike in bad loans brought on by the coronavirus pandemic.
Emirates NBD increased impairments allowances more than three times to AED4.2bn, according to a statement. Profit dropped to AED4.1bn due to the higher impairment charges and a gain on the sale of a stake in Network International Holdings Plc last year wasn’t repeated.
Emirates NBD joins regional competitors in increasing provisions as they face an “earnings shock” from the plunge in oil prices and the coronavirus pandemic.