Sunday, Feb 03, 2013

(This story was originally published Thursday.)

By Nicolas Parasie

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Emirates NBD (EMIRATES.DFM), Dubai's largest bank by assets, on Thursday said its fourth-quarter net profit quadrupled on lower impairments and that its outlook is improving thanks to a rebound of the United Arab Emirates' economy.

The lender said fourth-quarter net profit rose to 625 million U.A.E. dirhams ($170.1 million) from AED152 million in the same period one year ago. Revenues for the quarter inched higher to AED2.5 billion. Its full-year net profit rose 3% to AED2.6 billion from AED2.5 billion in 2011. Last year's result was affected by the high level of provisioning, including impairments against the bank's investment in local real estate firm Union Properties.

Fourth-quarter net profit beat several analysts' expectations. Global Investment House forecast AED440 million for the quarter, while SICO pencilled in AED214.4 million, but EFG Hermes had predicted AED705 million in fourth-quarter net profit.

Dubai-based Emirates NBD saw its profitability eroded in the past few years as a local real estate boom came to a bust and it was forced to take heavy provisions. But as the United Arab Emirates enjoy an economic rebound, the lender has become more upbeat about its prospects and also expanded abroad. Late last year, ENBD acquired the Egyptian business of France's BNP Paribas in a $500 million deal as it seeks to bolster its international revenues.

"Despite the challenges reflected in the broader global economic environment, the UAE and Dubai in particular have shown resilience and solid growth during the year and Emirates NBD is well-placed to continue to capitalise on this improving economic backdrop," said the bank's chairman Ahmed bin Saeed Al Maktoum.

Investment Corporation of Dubai, in which the Dubai government is the majority shareholder, owns a 55.6% stake in Emirates NBD.

On Wednesday, ENBD said its board has proposed a 25% cash dividend for 2012, an increase of 5% compared to the previous year

Emirates NBD shares closed at AED3.80 on Tuesday. The stock was suspended from trading Wednesday.

Write to Nicolas Parasie at nicolas.parasie@dowjones.com

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03-02-13 0348GMT