Abu Dhabi-Mubasher: Watani Investment Company (NBK Capital) set the fair value of the National Bank of Abu Dhabi (NBAD) at AED 9.50, with “Buy” recommendation, according to recent statement.
Despite the bank’ negative financials for the fiscal year 2015, NBK Capital proposed “Buy” recommendation on NBAD stock due to its low price.
NBAD posted profits of AED 5.23 billion ($1.43 billion) in the fiscal year 2015, down 6.22% from AED 5.56 billion ($1.52 billion) in the fiscal year 2014, according to a bourse filing on Wednesday.
The profit decline is mainly attributed to a rise in provisions and decline in operating revenues.
Asset quality indicators fell as non-performing loans (NPL) rose to 2.8% in December 2015 from 2.6% in September 2015. NPL coverage declined to 105% during the same period from 114%.
