ADCB, the third largest lender in Abu Dhabi by market value, posted a net profit of 514 million dirhams ($139.94 million) in the fourth quarter, compared with AED371 million a year earlier, a bank statement said. 

Analysts polled by Reuters forecast an average fourth-quarter net profit of AED570 million

Reuters earlier calculated a quarterly net profit of AED529 million based on the lender's previous financial statements.  

Impairment allowances for the fourth quarter fell to AED549 million from AED647 million a year earlier, the bank said in the statement to the Abu Dhabi bourse. 

On the other hand, net interest and Islamic finance income rose to AED1.39 billion from AED1.03 billion. 

The lender, which sold its stake in Malaysia's RHB Capital last year, saw its full-year net profit surge to AED3.05 billion versus AED390.6 million for 2010. 

The full year profit growth was aided by a 1.31 billion gain from the sale of the RHB stake and a drop in impairment allowances on loans and advances.

ADCB said impairments fell to AED2.08 billion from AED2.86 billion in 2010. 

ADCB was the frontrunner to buy the UAE operations of British lender Lloyds Banking Group, sources told Reuters earlier this month.

Last June, ADCB sold its 25 percent stake in RHB to Abu Dhabi fund Aabar Investments for $1.91 billion.

The lender's shares rose 5.7 percent to AED3.02 on the bourse after the results were announced.