Report
EUR 9.28 For Business Accounts Only

Q3 review: Bottom line boosted by investment property gains

​Bottom line boosted by investment property gains, should help beat revenue and earnings target for FY 16e


  • ​Excluding one-off gain on sale of investment properties of AED 473m during Q3, a slight earnings beat of +1.2%, +6.5% q/q and -2.0% y/y. FGB is left with AED 6bn of investment properties on its books after it sold this AED 2.3bn worth of properties.
  • Margins improved sequentially during the quarter underpinned by asset re-pricing (corporate) and improved yields on bond portfolio and better funding costs (repayment of expensive sukuk in August). 
  • NPL ratio improved from the previous quarter due to a settlement of a large wholesale exposure during the period as expected ─ this is the reversal of the technical downgrade that occurred in Q2. 
  • Maintains FY 16e guidance, though we think FGB will beat its revenue and profit targets after the property gains.

Underlying
First Gulf Bank PJSC

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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