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Dubai’s Emirates NBD net profit up 8 percent

A net profit of $192m was forecasted for Emirates NBD’s fourth quarter

Published: Updated:

Emirates NBD (ENBD), Dubai’s largest lender, on Monday said its fourth-quarter net profit rose eight percent, missing analysts’ forecasts as the amount set aside by the lender to meet loan losses soared.

The lender, 55.6-percent owned by state fund Investment Corp of Dubai, made a net profit of 673 million dirhams ($183.2m) in the three months to Dec. 31, a statement from the bank said, compared with $170m in the same period last year.

An average of five analysts polled by Reuters forecast a net profit of $192m for the fourth quarter.

The net profit came despite a 40 percent year-on-year jump in impairment allowances, which rose to $356m in the fourth quarter.

Full-year net profit for 2013 was $887m, up 27 percent from the $694m recorded in the previous year.

ENBD said it would pay a cash dividend of 0.25 dirhams ($0.06) per share for 2013. This is the same as the 2012 dividend.