Tuesday 27 July 2010
Emirates NBD Second-Quarter Net Drops 53%, Below Estimates, on Loan Losses - Bloomberg
Emirates NBD PJSC reported a worse- than-expected 53 percent decline in second-quarter profit as the United Arab Emirates’ biggest bank by assets set aside money to cover bad loans including exposure to state-owned Dubai World.
Net income dropped to 398.2 million dirhams ($108 million) from 852 million dirhams a year earlier, the Dubai government- controlled bank said in a statement to the bourse today. That fell short of the median estimate of four analysts for a profit of 614 million dirhams, according to data compiled by Bloomberg.
Emirates NBD raised general provisions for future loan impairments by 668 million dirhams in the second quarter, mainly to cover losses related to Dubai World, Chief Executive Officer Rick Pudner said in a conference call. Dubai World, which is delaying repayment of $14.4 billion of bank loans, is likely to complete the accord to restructure the debt by “about September, so we will know the specifics” of provisions then, he said.
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They are cooking the books. How could they have the same provision for impairment in Corp and CWM??? The profit numbers are overstated taking to account these changes the bank should have reported a loss. they have provided 2.3bn on a 200bn book. just over a %?? the more realistic number should be 4%-8%. this translates to 8 to 16bn of losses.
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