​ The new NBAD ─ regional power house like QNB ─ offers a compelling
investment case underpinned by i) margin expansion driven by a
combination of NBAD’s robust credit rating and FGB’s retail strength,
ii) cost reduction, already underway, with C/I ratio trending
downwards to FGB’s levels and iii) strong balance sheet growth
supported by big ticket items and the solid market share.
ï‚· No surprises in the recent pro forma numbers released by NBAD-FGB
with goodwill estimated at AED 16bn, whilst the acquisition
accounted for as a reverse acquisition by FGB.
ï‚· NBAD (on pro forma numbers) is trading at 9.1x EPS17e and 1.4x
tNAV16e against RoE17e 14.9%, RoRWA17e of 2.2% and RAROC17e of
17.2% ─ a better indicator of its normalized earnings capacity.
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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