Wednesday 5 January 2011

Emirates NBD set for gains after provisions - The National

With major provisioning largely behind it, Emirates NBD could increase its profit almost fivefold for the fourth quarter of last year compared with the fourth quarter of 2009, a banking analyst estimates.

Shares in the emirate's largest bank by assets rose by more than 4 per cent to Dh2.80 yesterday on the Dubai Financial Market.

Like many other regional banks, Emirates NBD had significant exposure to Dubai World and was forced to make substantial provisions in the past few quarters. All told, it would have made provisions of more than US$3 billion for last year, but the fourth-quarter figure should be only about $150 million, said Naveed Ahmed, a financial analyst at Global Investment House in Kuwait.

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