#Dubai Islamic Slumps as NMC Exposure Risks Wiping 45% of Profit - Bloomberg

Dubai Islamic Slumps as NMC Exposure Risks Wiping 45% of Profit - Bloomberg:

Dubai Islamic Bank PJSC shares dropped the maximum allowed after the lender said it has $541 million of exposure to NMC Health Plc, which could wipe out almost half of its estimated profit for this year.

The Dubai-based bank had about $425 million of exposure at the end of March, while NMC owed its subsidiary Noor Bank about $116 million, according to a statement. With an estimated profit of 4.46 billion dirhams ($1.2 billion) this year, according to seven analyst forecasts, the exposure represents about 45% of its projected profit, according to Bloomberg calculations.

Dubai Islamic Bank said it’s now in talks with NMC’s other main creditors and advisers to ascertain the hospital operator’s financial position and address its governance and financial issues. The bank said it will work closely with all stakeholders to prioritize the preservation of the group’s healthcare operations.

The shares lost as much as 4.8% shortly after Dubai’s market opened.