National Bank of Abu Dhabi PJSC jumped to the highest level in more than seven years after quarterly profit at the second-biggest lender in the United Arab Emirates beat analysts’ estimates.
The shares climbed as much as 8.1 percent to 12 dirhams, the highest since January 2006, valuing the state-controlled bank at 51 billion dirhams ($14 billion). The benchmark ADX General Index (ADSMI) rose 1.2 percent at 11:33 a.m. in the emirate.
First-quarter profit climbed to 1.41 billion dirhams from 1.04 billion dirhams as operating income advanced 24 percent. The mean estimate of five analysts was for a profit of 1.1 billion dirhams, according to data compiled by Bloomberg.
“The bank reported strong results that showed growth on all aspects: operational profits, deposits and other aspects,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
Operational income advanced to 2.51 billion dirhams from 2.03 billion dirhams a year earlier. Deposits increased to 206 billion dirhams at the end of first quarter from 190 billion dirhams at the end of last year.
The stock’s 14-day relative strength index rose to 81 today. A reading above 70 indicates to some analysts that a security or index is poised to decline. One analyst has a buy rating on the stock, 11 say hold and one says sell, according to data compiled by Bloomberg.
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