Emirates NBD Q2 profit slumps, misses forecast
Dubai, July 26, 2010
Emirates NBD, one of the Gulf banks most exposed to indebted Dubai World, missed analysts' forecasts as its quarterly profit more than halved due to a loss on trading securities and higher impairments.
ENBD, the fourth-largest bank by market value in the UAE, posted a 53-per cent decrease in second-quarter profit to Dh398 million ($108.4 million) from Dh852 million in the same quarter in 2009.
Analysts polled by Reuters had estimated an average second-quarter profit of Dh736 million.
ENBD is one of two local banks that sits on a seven-member committee handling the debt talks between Dubai World, the state conglomerate which is restructuring billions of debt, and the rest of its lenders.
ENBD said 'economic activity and credit expansion in the second quarter (was) relatively subdued as a result of renewed global uncertainties.'
The bank booked a Dh36.7 million net loss on trading securities compared to Dh132 million net gain in the year-ago quarter.
ENBD, majority-controlled by Dubai, booked a net impairment loss of Dh1.19 billion during the second quarter, compared to Dh1.15 billion in the same period in 2009.
On Sunday, shares in ENBD rose 0.8 per cent. The stock has dropped around 15 per cent in the past three months. – Reuters