Cairo - Mubasher: MubasherTrade Research has downgraded their rating for the Export Development Bank of Egypt (EBE) from Buy/High Risk to Hold/High Risk after the recent run in the bank's stock price, according to a recent report.
The research firm has also maintained their 12-month price target (PT) for the stock at EGP 10.4.
The bank’s net loans grew 41.2% year-on-year due to the Egyptian pound floatation effect, standing at EGP 13.1 billion at the end of December 2016.
Meanwhile, customer deposits accelerated by 23.8% to EGP 24.7 billion, implying a net loans-to-deposits ratio (LDR) of 53% versus 46.5% as of December 2015.
“We believe that EBE's capital base will improve over the coming period after shareholders agreed to freeze cash dividend distribution for FY2015/16 in view of the latest witnessed decrease in the bank's capital adequacy ratio (CAR) from 15.2% as of September 2015 to 14.2% as of September 2016.
