Emirates NBD, ADCB Rated New `Buy' as Rasmala Initiates Six U.A.E. Banks
Emirates NBD PJSC, the United Arab Emirates’ largest bank by assets, and Abu Dhabi Commercial Bank PJSC were rated new “buy” as Rasmala Investments initiated coverage on six banks.
“The market is pricing in three main categories of risks: existing balance sheet risk, the rescheduling/restructuring risks related to ‘Dubai Inc’ and the broader structural risks that are somewhat harder to quantify,” Raj Madha, a Dubai-based bank analyst wrote.?“We think returns for the sector are set to recover strongly once provisioning settles down.”
Rasmala also initiated National Bank of Abu Dhabi with “buy”, and First Gulf Bank PJSC, Abu Dhabi Islamic Bank and Dubai Islamic Bank with “hold”.