Report
EUR 9.28 For Business Accounts Only

Almost in-line earnings with its “conservative” growth approach

​Almost in-line earnings with ADIB continuing with its “conservative” growth approach against the backdrop of weak capital and asset quality concerns..


  • ​Earnings miss our expectations slightly by -1.1% with no surprises in Q3
  • Balance sheet growth remains subdued driven by its â€œconservative approach” amid capital constraints and asset quality outlook that remains “negative in a number of segments”
  • NPL ratio formation increased during the quarter with NPL ratio increasing to 4.4% from 4.0% in Q2, while credit costs remain elevated
  • Capital is the key concern (CETI ratio of 9.0% in Q3) with ADIB still exploring options to boost capital base via a series of specific actions

Underlying
Abu Dhabi Islamic 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. 

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