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Thu 24 Oct 2013 09:33 AM

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Emirates NBD's Q3 net profit misses forecasts

Dubai's largest lender made net profit of $211m in the three months to Sept 30

Emirates NBD's Q3 net profit misses forecasts

Emirates NBD, Dubai's largest lender, said on Thursday its third-quarter net profit rose 21 percent, missing analysts' forecasts as quarterly provisions rose sharply.

The lender, 55.6-percent owned by state fund Investment Corp of Dubai, made a net profit of 775 million dirhams ($211 million) in the three months to Sept. 30, a statement from the bank said, compared with 640 million dirhams in the same period last year.

This was well down on the average of six analysts polled by Reuters, who expected a net profit of 937.5 million dirhams for the third quarter.

The forecast miss was mainly due to a spike in impairment allowances, which rose 50 percent in the quarter to 1.52 billion dirhams from 1.01 billion dirhams in the same period last year.

ENBD, which completed the purchase of BNP Paribas' Egyptian assets in June, has benefited from Dubai's improved economic environment in recent months, where a real estate revival has helped breathe confidence into the wider economy.