ENBD sees bad loans at 14-15pc in 2013
Dubai, July 22, 2013
Bad loans as a proportion of the bank's total lending book will be 14-15 percent this year, instead of a previous estimate of 15-16 percent, Surya Subramanian, chief financial officer of Emirates NBD, Dubai's largest lender, said.
ENBD has revised down its 2013 guidance for non-performing loans by 1 percentage point on the back of improved economic conditions in the emirate and benefits from its acquisition of BNP Paribas' Egyptian assets.
NPLs stood at 13.9 percent at the end of the second quarter, down from 14.2 percent at the end of March.
Dubai was pummelled by a sovereign-linked debt crisis and the bursting of a local real estate bubble in 2009, which caused slower growth and higher provisioning at local banks. But in recent months, the emirate's economy has been rebounding.
The bank completed its first foreign purchase last month with the acquisition of the Egyptian assets of BNP Paribas. – Reuters
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