Banks are facing a bleak start to the year, with increased provisions for bad loans and restructurings predicted to take a toll on earnings for the final three months of last year.
Analysts expressed concern that the extent of provisions for debts held by Dubai World, Dubai Holding and other government-related entities - still undeclared by many banks - could have a big impact on profitability and creditworthiness.
In November, provisions increased by 4.04 per cent from the previous month to Dh41.2 billion (US$11.21bn), a record high for the year, according to data released by the Central Bank.
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