Report
EUR 9.28 For Business Accounts Only

ADCB - Q3 earnings review


  • A small earnings miss on higher than expected credit costs that continue to remain elevated driven by the operating environment and higher volumes
  • Balance sheet growth resilient, however, comes at a cost with deposit growth driven by expensive time deposits
  • Persistent margin compression as higher funding costs are not reflected in asset pricing with NIM at 3.02% during 9M 16A versus 3.37% in 9M 15A
  • No surprises in Q3 with higher credit and funding costs weighing on profitability as expected; annualized RoE amounted to 16.0% (after coupon payment) based on 9M and 14.8% on Q3 net income.

Underlying
Abu Dhabi Commercial Bank

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Other Reports on these Companies
Other Reports from Arqaam Capital

ResearchPool Subscriptions

Get the most out of your insights

Get in touch