Aug. 22 (Bloomberg) -- Emirates NBD PJSC, the United Arab Emirates’ biggest bank, and fourth-ranked Abu Dhabi Commercial Bank PJSC rose after Goldman Sachs Group Inc. raised the duo to buy on “solid” second-quarter earnings.
Emirates NBD advanced 1.8 percent to 5.6 dirhams, snapping two days of declines. The lender was the biggest gainer on the DFM General Index, which climbed 1.1 percent. Abu Dhabi Commercial Bank climbed 2.5 percent, the most in more than two months, to 5.3 dirhams, while Abu Dhabi’s ADSMI Index added 0.7 percent.
“We view positively strong topline growth during the first half of 2013, underpinned by volume growth and margin expansion and signs of assets and credit quality normalisation,” Waleed Mohsin, an analyst at Goldman, wrote in an e-mailed report dated Aug. 21.
Emirates NBD reported on July 22 a 50 percent surge in profit to 970.8 million dirhams ($264 million) for the three months through June as operating income jumped 17 percent. The non-performing loans ratio slipped to 13.9 percent from 14.2 percent in the previous quarter. Lending increased 6 percent in the six months through June.
Abu Dhabi Commercial Bank said July 30 profit climbed 20 percent to 868.5 million dirhams in the second quarter. The bank’s lending rose 1.8 percent in the first half.
Emirates NBD has surged 96 percent this year compared with a 66 percent jump by the benchmark index. Abu Dhabi Commercial Bank has risen 78 percent over the same period, outperforming the ADSMI gauge’s 50 percent advance.
Four analysts rate Emirates NBD as buy, another four recommend hold and one calls it a sell, according to data compiled by Bloomberg. Four analysts rate Abu Dhabi Commercial as a buy and 10 suggest investors hold the shares.
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