Emirates NBD, Dubai’s largest lender, missed analysts’ forecasts despite an 8% rise in fourth-quarter net profit as a surge in the amount set aside by the lender to meet loan losses offset increased net interest income.
The lender, 55.6% owned by state fund Investment Corp of Dubai, made a net profit of 673mn dirhams ($183.2mn) in the three months to Dec 31, a statement from the bank said, compared with 626mn dirhams in the same period last year.
An average of five analysts polled by Reuters forecast a net profit of 705.9mn dirhams for the fourth quarter.
Fuelling the profit growth was a 26% increase in net interest income versus the corresponding period of 2012 to 2.22bn dirhams, which the bank attributed to higher lending growth and lower funding costs.
However, this was offset by a 40% year-on-year jump in impairment allowances, which rose to 1.31bn dirhams in the fourth quarter.
Mashreq
Mashreq, Dubai’s third-biggest lender by assets posted a 48% rise in fourth-quarter net profit on the back of lower impairment allowances, Reuters calculations showed.
The bank earned 504.6mn dirhams ($137.4mn) in the quarter, compared with 342mn dirhams in the year-ago period. Brokerage Arqaam Capital expected it to post a profit of 525mn dirhams for the quarter.
The bank said in a bourse statement its net profit for the full year rose to 1.81bn dirhams from 1.37 bln dirhams in 2012, a 37.6% increase. Reuters calculated the quarterly results from the bank’s previous financial statements.
Zain
Zain, Kuwait’s No.1 telecommunications operator, reported near-flat fourth-quarter profit yesterday, missing analysts’ estimates.
The former monopoly, which operates in eight countries in the Middle East and Africa, made a net profit of 51mn Kuwaiti dinars ($180.59mn) in the three months to Dec 31, it said .
This was up from 50.5mn dinars in the year-earlier period, Reuters data shows. Two analysts polled by Reuters had forecast Zain would make a quarterly profit of between 52.1mn dinars and 59.1mn dinars.
