NBK Capital ups First Gulf Bank to 'buy'
Kuwait, June 8, 2012
NBK Capital upgraded First Gulf Bank to "buy" from "accumulate" and said it expects the lender to record a 6 percent growth in net profit this year.
First Gulf Bank, Abu Dhabi's second-largest bank by market capitalization, could likely grow its loan book by 8 percent, supporting a 6 percent growth in net interest income in 2012, the brokerage wrote in a note to clients.
In April, FGB posted a 7-percent rise in first-quarter net profit, and booked provisions of 412.7 million dirhams, 10 percent lower than the year-ago period.
NBK Capital maintained its "buy" recommendation on Abu Dhabi's Union National Bank and an "accumulate" on National Bank of Abu Dhabi, Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank, the regions top three lenders by market value.
It said the UAE banking sector, which recorded a 0.3 percent loan growth year-to-date, continues to see muted growth and asset quality concerns.-Reuters
More Finance & Capital Market Stories
- Mashreq to enhance mobile banking app
- NBK Capital exits Turkey hospital chain
- Abu Dhabi holding firm Senaat plans share sale
- Iraq Trade Bank to expand into Lebanon, Turkey
- UAE’s non-oil job, output levels surge
- New Bahrain drive to aid young entrepreneurs
- Arabtec $650m rights issue to open on June 9
- LIC Bahrain sees 23pc premium growth in 2012
- Gold slips after Bernanke comments
- Xpress Money offers free life insurance