Abu Dhabi – Mubasher: Credit growth is expected to increase in 2018-2021 backed by the growth in economic output and liquidity.
Net interest margins are improving on the back of increased yields, while operating income saw limited growth and cost of risk may remain low, according to a company report released on Sunday by Ubhar Capital.
Ubhar set target prices per share of Emirates NBD and Abu Dhabi Commercial Bank (ADCB) at AED 13.5 and AED 7.5, respectively.
“Emirates NBD’s management has indicated that its foreign ownership limit (FOL) increase may not materialise if Turkey’s Denizbank acquisition does not come through, for which the bank’s shareholders have approved an AED 7.4bn rights issue to finance the acquisition,” the report found.
