Emirates NBD Misses Estimates as Bad Loan Provisions Climb - Bloomberg

Emirates NBD Misses Estimates as Bad Loan Provisions Climb - Bloomberg:

"Emirates NBD PJSC, (EMIRATES) Dubai’s biggest bank, reported a 21 percent increase in third-quarter profit, missing analyst estimates, as provisions for bad loans climbed.
Net income rose to 776 million dirhams ($211 million) from 640 million dirhams a year earlier, the state-controlled bank said in a statement today. The mean estimate of five analysts was for a profit of 923 million dirhams, according to data compiled by Bloomberg. Impairment provisions jumped 50 percent from a year ago to 1.52 billion dirhams and now cover 54.8 percent of bad loans compared with 48 percent a year ago. The bank’s full-year target is to cover 55 percent to 60 percent.
The impairment charge primarily includes “conservative specific provisions made in relation to the bank’s corporate and Islamic financing portfolios,” Emirates NBD said. “Going forward the bank aims to keep improving the coverage ratios.”"

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