More Emirates NBD provisions

Emirates NBD is eyeing merger opportunities within the region and the lender will set aside more money to cover bad loans in 2011 amid debt restructuring, its top executive said on Wednesday.

ENBD, Dubai's largest bank by market value, reported sharply higher fourth-quarter profit last month but impairments on non-performing, or bad loans and on investments hit its yearly results.

"There will be further restructurings going on, there will be further provisions, the content of that I cannot say. We are not out of the provision phase yet," Chief Executive Rick Pudner told reporters on the sidelines of a conference.

Asked whether the lender was eyeing any mergers this year, he said: "We're looking at opportunities ... we continue to look around, our ambition is to move some of our revenue generating activities outside of the UAE."

The lender has about Dh12.9 billion ($3.51 billion) in debt maturing in the next two years, with Dh3.8 billion due in 2011 and just over Dh8 billion next year, a presentation said.

ENBD is 56 per cent owned by the Investment Corporation of Dubai (ICD), the emirate's sovereign wealth fund.

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