Bloomberg News

Emirates NBD Falls Most This Year on Market Outlook: Dubai Mover

February 17, 2012

Feb. 16 (Bloomberg) -- Emirates NBD PJSC tumbled the most this year after the United Arab Emirates biggest bank by assets reported fourth-quarter profit that missed analysts estimates and said the outlook for the business was “challenging.”

The shares declined 4.7 percent, the biggest drop since Dec. 27, to 2.86 dirhams at the 2 p.m. close in Dubai. The benchmark DFM General Index retreated 0.5 percent.

The bank reported a 62 percent decline in fourth-quarter profit to 152 million dirhams ($41 million) after it boosted bad loan provisions. The median estimate of four analysts was for a profit of 172 million dirhams, according to data compiled by Bloomberg.

U.A.E. banks’ guidance is that it is “a little early to say if there is going to be an improvement in credit cost in 2012,” said Shabbir Malik, a Dubai-based analyst at investment bank EFG-Hermes Holding SAE. The lower-than-forecast profit also helped bring “more sellers in the market,” said Julian Bruce, equity sales head at the same investment bank.

Emirates NBD’s ratio of non-performing loans to gross loans rose to 13.8 percent in the fourth quarter from 12.9 percent in September. The non-performing loan ratio will be 14 percent to 15 percent this year and 15 percent to 16 percent in 2013, the bank said.

--Editors: Shaji Mathew, Andrew J. Barden

To contact the reporters on this story: Alaa Shahine in Dubai at asalha@bloomberg.net; Arif Sharif in Dubai at asharif2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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