Abu Dhabi-Mubasher: NBK Capital, the investment arm of National Bank of Kuwait (NBK), recommended 'Buy' on the Union National Bank (UNB) and set the fair value at AED 6.10.
Despite fall in FY15 earnings, the 'Buy' recommendation was placed on the stock due to its low price.
The bank's earnings for the fiscal year ended 31 December 2015 dropped 7.8% year-on-year to AED 1.76 billion ($479 million) from AED 2.02 billion ($550 million).
Operating income fell 11% year-on-year, pressured by a steep decline in net interest margin.
Loans increased by 7% in 2015, and deposits grew 2% in Q4-15. Loan-to-deposit ratio decreased by 91% in December 2015, compared with 95% in the same month of 2014.
Dividends for FY15 also declined to 20% (AED 0.20) from 25% in 2014.
