Emirates NBD Fourth-Quarter Profit Jumps 74% as Impairments Dropby
Bank's deposits climbed 11% over full-year, lending up 10%
Stock climbs most since September in Dubai after earnings
Emirates NBD PJSC reported a 74 percent jump in fourth-quarter profit, beating analyst estimates, as the United Arab Emirates’ second-biggest bank benefited from a decline in bad loan charges and a rise in lending.
Net income advanced to 2.13 billion dirhams ($580 million) from 1.23 billion dirhams a year earlier, the Dubai government-controlled lender said in a statement to the city’s bourse Monday. The mean estimate of four analysts was for a profit of 1.45 billion dirhams. Impairment allowances dropped by almost half to 599 million dirhams and the bank proposed a dividend of 40 fils a share, up from 35 fils the previous year.
Banks in Dubai have gained as the emirate’s trade, tourism and property industries recovered from the global financial crisis, helping reduce bad-loan charges. A more than 70 percent slump in crude oil prices since June 2014 may slow growth this year as government spending declines and loan-loss charges rise again, Standard & Poor’s said last week.
The bank climbed 6.4 percent to 6.85 dirhams by 10:22 a.m. in Dubai trading, the biggest gain since September.
Full-year lending increased 10 percent to 270.6 billion dirhams and deposits rose 11 percent to 287.2 billion dirhams. The impaired loan ratio fell to 7.1 percent from 7.9 percent.