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Emirates NBD misses Q4 earnings forecasts

January 28, 2014

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 .

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Source: Gulf Times (Qatar)

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