Emirates NBD misses Q4 earnings forecasts

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.MashreqMashreq, 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.ZainZain, 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.