Cairo – Mubasher: NBK Capital reiterated its ‘Buy’ recommendation on Crédit Agricole Egypt (CAE), with a fair value estimate of EGP 30.4.
The bank reported net profit of EGP 270 million for the third quarter of 2015, a rise of 76% year-on-year and 11% quarter-on-quarter, also 10% higher than NBK Capital’s forecast.
“Operating income soared 28% YoY and came 8% higher than our forecast. The NIM for 3Q2015 was up around 10 bps QoQ, driven by higher asset yields,” said NBK Capital.
Loans were up around 1% QoQ (+10% YTD) while deposits increased by 2% QoQ.
NBK Capital said the bank has a very strong set of results, adding that the majority of the net profit beat came from the top line.
“Additionally, NIM improvement, no major increase in NPLs, higher NPL coverage, and improving RoAE are key positives. Given the slow business season, loan growth appears slightly on the weak side for the quarter; however, we expect that growth will pick up again in 4Q2015,” said the research firm.
