The big banks are set to release stellar third-quarter results after Eid, with Dubai’s lenders expected to set the pace.
Analysts at National Bank of Abu Dhabi (NBAD) are forecasting as much as Dh5.3 billion in aggregate profit for seven banks for the quarter. Lower interbank offered rates, robust credit activity and bigger customer deposits are all indicators signalling recovery and growth for the banking sector, the report said.
Two Dubai banks are expected to show the highest rate of profit growth in the quarter, according to estimates by NBAD.
Emirates NBD, the nation's biggest lender by assets, is expected to report Dh924 million, a rise of 44.4 per cent from last year.
And Dubai Islamic Bank is expected to record Dh420m in quarterly profit, a 40.8 per cent rise from last year's figure.
What is giving Dubai banks in particular a boost is the emirate’s improved asset quality.
“During the financial crisis, we were overweight on Abu Dhabi banks because the asset quality was better, but now that the market recovered, Dubai banks are looking interesting too,” said Tariq Qaqish, the head of asset management at Al Mal Capital, a Dubai-based investment bank.
In a report, NBAD said Dubai’s banks have earned a position reassessment of how high their share prices should be.
“Given Dubai-based banks had suffered sharp relative value compression amid the slowdown in the emirate since 2008, increasing evidence this year of a stronger recovery in the property sector than expected as well as in the broader economy is leading to relatively sharp re-rating, as in the cases of Emirates NBD and Dubai Islamic Bank,” said Sanyalak Manibhandu, an analyst, in the report.
“We believe the re-rating has further head room, subject to UAE banks continuing to deliver operational performance outturn that reflects accelerating asset momentum and improving credit quality.”
Shares of Emirates NBD and Dubai Islamic Bank (DIB) have rallied 92.6 per cent and 100 per cent respectively so far this year.
Dubai banks' shares have rallied 77.8 per cent this year, according to Bloomberg data. They have outperformed the Dubai Financial Market General Index, which has rallied 74.4 per cent in the same period. Abu Dhabi's lenders have jumped 48.3 per cent, compared with 46.6 for the index.
NBAD’s estimates for Abu Dhabi’s banks are as follows:
• Abu Dhabi Commercial Bank, the third biggest lender by assets, is expected to make Dh794m in third quarter profit, a 33.6 per cent increase from the year previous.
• Abu Dhabi Islamic Bank, the capital's biggest Sharia-compliant lender, is expected to record Dh377m, a 14.9 per cent rise from the year previous.
• First Gulf Bank, the lender controlled by Abu Dhabi's ruling family, is expected to record Dh1.17bn in profit, a rise of 11.6 per cent.
• National Bank of Abu Dhabi, the biggest lender by market capitalisation, is expected to report Dh1.09bn. “Given NBAD has not grown its net advances [credit] consistently in the past two years or so, market expectations are less demanding than they might be for the second biggest bank in the UAE by total assets and loan market shares,” the NBAD report said.
• Union National Bank, another Abu Dhabi-listed lender, is expected to record Dh511m in the third quarter, a drop of 3.2 per cent from the year previous. "UNB has been negotiating with Dubai government related entities [GREs] on debt restructuring for many months," the report said. "The equity markets expects the bank to conclude restructuring with at least some of the GREs before the end of this year. Further extension to debt restructuring negotiations could disappoint some investors."
halsayegh@thenational.ae
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Pupils in Abu Dhabi are learning the importance of being active, eating well and leading a healthy lifestyle now and throughout adulthood, thanks to a newly launched programme 'Healthy Lifestyle'.
As part of the Healthy Lifestyle programme, specially trained coaches from City Football Schools, along with Healthpoint physicians have visited schools throughout Abu Dhabi to give fun and interactive lessons on working out regularly, making the right food choices, getting enough sleep and staying hydrated, just like their favourite footballers.
Organised by Manchester City FC and Healthpoint, Manchester City FC’s regional healthcare partner and part of Mubadala’s healthcare network, the ‘Healthy Lifestyle’ programme will visit 15 schools, meeting around 1,000 youngsters over the next five months.
Designed to give pupils all the information they need to improve their diet and fitness habits at home, at school and as they grow up, coaches from City Football Schools will work alongside teachers to lead the youngsters through a series of fun, creative and educational classes as well as activities, including playing football and other games.
Dr Mai Ahmed Al Jaber, head of public health at Healthpoint, said: “The programme has different aspects - diet, exercise, sleep and mental well-being. By having a focus on each of those and delivering information in a way that children can absorb easily it can help to address childhood obesity."
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
