Abu Dhabi – Mubasher: NBK Capital, the investment arm of Kuwait’s NBK, maintained its fair value estimate for First Gulf Bank at AED 16.5 per share, with a ‘Hold’ recommendation.
The evaluation followed the news that the bank cut around 100 jobs, a sign that GCC banks are moving towards coping with deteriorating market conditions.
Sources told Reuters on Monday that the bank laid off several employees as part of actions to boost efficiency.
The layoffs reflect weak operating environment in the UAE generally, although the bank has a more resilient infrastructure in terms of cost compared to local peers, said NBK Capital.
Late in October, NBK Capital reinstated FGB fair value at AED 16.50, placing a ‘Hold’ recommendation.
FGB earlier posted AED 4.29 billion net profit for the first nine months of 2015, a rise of 4% year-on-year from AED 4.11 billion.
