shares in first abu dhabi bank surge
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Shares in First Abu Dhabi Bank surge

Arab Today, arab today

Arab Today, arab today Shares in First Abu Dhabi Bank surge

Executives od newly merged First Abu Dhabi Bank ring the bell at the Abu Dhabi
Abu Dhabi - Arab Today

Shares in the merged National Bank of Abu Dhabi and FGB – now known as First Abu Dhabi Bank – jumped on Wednesday as investors welcomed its forecast of higher profitability and a doubling of cost savings.
The bank said in an investor presentation published on its website that cost synergies are forecast at Dh1 billion, twice the initial estimate of Dh500 million. They would occur over a period of three years and would be driven by a reduction in branches and headcount.
At the same time, the bank said it was targeting a higher-than-expected return on equity, a measure of profitability, of 16 to 17 per cent by 2020.
Shares of the lender have rallied 9.1 per cent since Monday, closing 4.1 per cent higher at Dh11.35 on Wednesday.
"The management’s guidance on synergies was taken positively by the market," said Shabbir Malik, a Dubai-based analyst at the Egyptian investment bank EFG-Hermes.
"The bank’s outlook on profitability was a positive surprise as its ROE target of 16-17 per cent by 2020 is above our estimate of about 15 per cent. Although integration cost guidance was raised, its impact should be softened by the higher cost synergies."
First Abu Dhabi Bank also said the cost of integration would rise to Dh1.1bn from Dh600m over three years. Those costs will comprise mostly of write- offs of IT assets as well as costs of severance packages. Analysts said the revision of these estimates should be regarded as investments that will pay off in the long run.
It will have assets in excess of Dh670bn, making it the UAE’s largest bank and the second-largest in the Middle East by assets, behind Qatar’s QNB at US$198bn (Dh727.2bn).
Shares in First Abu Dhabi Bank, listed under the NBAD ticker, were traded on the Abu Dhabi Securities Exchangeon Sunday for the first time.
Under the terms of the merger, FGB shareholders received 1.254 NBAD shares for each FGB share held. FGB shares have subsequently been delisted.
The merger, which was approved by both banks’ shareholders on December 7, was done in part to cut down on costs by removing duplicate posts and sharing resources
Even though NBAD, the biggest bank by assets in the UAE, had made headway in building its consumer banking business, it will get a boost from joining forces with FGB, which has more loans to individuals on its books.
Retail lending accounts for about 40 per cent of FGB’s total lending book, while NBAD’s consumer lending portfolio makes up just 17 per cent of its outstanding loans.
Investors have backed the combination, especially as NBAD is considered one of the safest banks in the world; its high credit ratings will allow it to borrow at low cost on behalf of the new entity.
Moody’s Investor Services on Tuesday maintained its ratings on NBAD following the merger with FGB on the expectation that the consumer banking business of the new combined entity will boost growth.
The credit rating agency affirmed the long and short-term foreign and local currency deposit and debt ratings of NBAD at Aa3/P-1.
Moody’s has altered the ratings of FGB to match those of NBAD before saying it would be withdrawing the FGB ratings altogether following the delisting of FGB shares.

Source: The National

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shares in first abu dhabi bank surge shares in first abu dhabi bank surge

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shares in first abu dhabi bank surge shares in first abu dhabi bank surge

 



GMT 10:10 2017 Thursday ,09 February

3 Important Elements You Have to Consider

GMT 04:03 2017 Monday ,24 April

Bella Hadid ‘dying’ to visit Palestine

GMT 19:25 2016 Wednesday ,25 May

The Brooklyn Desk by Oeuf NYC

GMT 07:49 2018 Friday ,05 January

2 Russian servicemen killed

GMT 07:58 2018 Monday ,01 January

Italy orders N. Korea's envoy to leave

GMT 08:45 2017 Wednesday ,20 December

US military imagines war without GPS

GMT 17:26 2017 Sunday ,17 December

Putin thanks Trump for help in foiling attack plot

GMT 22:19 2017 Monday ,16 October

Cairo-hosted Fatwa conf. new contribution

GMT 02:27 2016 Friday ,10 June

Video hints Japan abetting illegal ivory trade

GMT 07:04 2017 Wednesday ,19 April

1,883 Bahrainis found jobs in March

GMT 14:24 2016 Tuesday ,22 November

Citi and JPMorgan top list of ‘globally banks’

GMT 21:43 2017 Friday ,01 September

People question Nazaruddin`s repatriation expenses

GMT 09:41 2017 Wednesday ,19 April

OIC concerned over violence in Mali

GMT 01:30 2017 Friday ,27 October

May22/Jun21

GMT 05:38 2016 Friday ,30 December

Dubai Airports divert 13 flights due to heavy fog

GMT 11:38 2017 Saturday ,14 January

Mexico names new ambassador to US

GMT 12:03 2017 Wednesday ,22 March

Kuwait to mark World Water Day

GMT 15:00 2017 Wednesday ,27 September

HM King receives invitation from Egyptian President

GMT 02:45 2017 Tuesday ,05 December

President Bashir arrives in Chad

GMT 02:45 2017 Wednesday ,16 August

Turkmen President Visits Pakistan
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday