External broker reports(aggregated public sources), International Securities

International Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

Abu Dhabi Islamic Bank PJSC / Equity Bottom-Up

<ul><li>Shareholders profit up 19.1% YoY to AED1.6bn (+16.4% QoQ; +13.1% vs estimates)</li><li>Net interest income up 3.7% YoY to AED1.75bn (+5.3% QoQ; +4.8% vs estimate)</li><li>Non-interest income 35.4% YoY to AED1.1mn (+15.0% QoQ, +3.4% vs estimates)</li><li>Net operating income up 16.6% YoY to AED2.87bn (+8.9% QoQ; +4.2% vs estimates)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Shareholders profit up 19.1% YoY to AED1.6bn (+16.4% QoQ; +13.1% vs estimates)Net interest income up 3.7% YoY to AED1.75bn (+5.3% QoQ; +4.8% vs estimate)Non-interest income 35.4% YoY to AED1.1mn (+15.0% QoQ, +3.4% vs estimates)Net operating income up 16.6% YoY to AED2.87bn (+8.9% QoQ; +4.2% vs estimates)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ADIB - 1Q25 Earnings up 19% YoY (+16.4% QoQ) On Higher NFI Despite Higher Tax, Above Our Estimates

<ul><li>Shareholders profit down 2.1% YoY to AED1.39bn (-9.7% QoQ; +6.3% vs estimates)</li><li>Net interest income up 2.9% YoY to AED1.66bn (+5.2% QoQ; +8% vs estimate)</li><li>Non-interest income flat YoY to AED974mn (-8.5% QoQ, -5.4% vs estimates)</li><li>Net operating income up 5.4% YoY to AED1.8bn (-1.8% QoQ; +2.8% vs estimates)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Shareholders profit down 2.1% YoY to AED1.39bn (-9.7% QoQ; +6.3% vs estimates)Net interest income up 2.9% YoY to AED1.66bn (+5.2% QoQ; +8% vs estimate)Non-interest income flat YoY to AED974mn (-8.5% QoQ, -5.4% vs estimates)Net operating income up 5.4% YoY to AED1.8bn (-1.8% QoQ; +2.8% vs estimates)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Adib -4Q24 Earnings Down 2.1% YoY (-9.7% QoQ), Beat Our Estimates on Lower-Than-Expected Tax Charge

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>MENA remains a structural underweight, absent in nearly 25% of EM funds, though participation has climbed to a decade high with 75.9% of EM funds now holding positions.</li>
<li>UAE has overtaken Saudi as the largest allocation, supported by inflows into Real Estate and Financials; Saudi remains underweight, while Qatar and Kuwait attract little investor interest.</li>
<li>Emaar, Al Rajhi, Aldar, and Saudi National Bank anchor MENA exposure, with second-tier growth from ADCB, Emirates NBD, and UAE Energy sectors.</li>
</ul>


MENA remains a structural underweight, absent in nearly 25% of EM funds, though participation has climbed to a decade high with 75.9% of EM funds now holding positions.
UAE has overtaken Saudi as the largest allocation, supported by inflows into Real Estate and Financials; Saudi remains underweight, while Qatar and Kuwait attract little investor interest.
Emaar, Al Rajhi, Aldar, and Saudi National Bank anchor MENA exposure, with second-tier growth from ADCB, Emirates NBD, and UAE Energy sectors.


MENA: From Structural Underweight to Selective Rebuild

Thematic (Sector/Industry)

<ul><li>UAE Banks are currently trading at median FY2025e P/B and P/E of 1.4x and 10.1x, respectively, undervalued compared to regional banks (2025e P/B and P/E of 1.8x and 14.2x, respectively), despite better ROEs (median 2025e ROE of c.15.2% compared to 13.9% of regional peers) and dividend yield (2025e div. yield of 4.5% vs 3.4% of regional peers).</li><li>We maintain Buy on FAB, ENBD and ADCB, and Hold on ADIB and DIB as we revise our fair values (FVs) upwards.</li><li>Credit growth for UAE Banks has remained robust (c.+9.5% YoY in 2024, +2.7% YTD in 1Q25) driven by domestic private sector lending (c.+8.5% YoY in 2024, +2.6%YTD in 1Q25) as well as sizable uptick in foreign credit (c.+31% YoY in 2024, +9.9%YTD in 1Q25).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

UAE Banks are currently trading at median FY2025e P/B and P/E of 1.4x and 10.1x, respectively, undervalued compared to regional banks (2025e P/B and P/E of 1.8x and 14.2x, respectively), despite better ROEs (median 2025e ROE of c.15.2% compared to 13.9% of regional peers) and dividend yield (2025e div. yield of 4.5% vs 3.4% of regional peers).We maintain Buy on FAB, ENBD and ADCB, and Hold on ADIB and DIB as we revise our fair values (FVs) upwards.Credit growth for UAE Banks has remained robust (c.+9.5% YoY in 2024, +2.7% YTD in 1Q25) driven by domestic private sector lending (c.+8.5% YoY in 2024, +2.6%YTD in 1Q25) as well as sizable uptick in foreign credit (c.+31% YoY in 2024, +9.9%YTD in 1Q25).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

UAE Banks: Macro Outlook Rendering Valuations Attractive

<ul><li>We expect FAB to report shareholders’ profit of AED4.2bn in 1Q25e, flat YoY and QoQ, as higher operating income is expected to be off-set by higher corporate taxes.</li><li>Net interest income is expected to remain flat YoY (-1.5% QoQ) to AED4.9bn, absorbing the impact of rate cuts during 2024 while loan book is expected to show decent growth.</li><li>Non-interest income is expected to remain robust with 4.1% YoY growth (+17.2% QoQ) mainly driven by continued momentum in fees and commissions, and trading income.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect FAB to report shareholders’ profit of AED4.2bn in 1Q25e, flat YoY and QoQ, as higher operating income is expected to be off-set by higher corporate taxes.Net interest income is expected to remain flat YoY (-1.5% QoQ) to AED4.9bn, absorbing the impact of rate cuts during 2024 while loan book is expected to show decent growth.Non-interest income is expected to remain robust with 4.1% YoY growth (+17.2% QoQ) mainly driven by continued momentum in fees and commissions, and trading income.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Quarterly Results Preview - 1Q25e Banking Sector

United Arab Emirates

Abu Dhabi Islamic Bank PJSC attracts deposits and offers consumer, corporate, and investment banking services.  The Bank finances the purchase of automobiles, real estate and capital equipment, offers letters of credit, sponsors investment funds, and offers property management and evaluation services. Abu Dhabi Islamic Bank lends money in accordance with Islamic law.

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Abu Dhabi Islamic Bank PJSC (ADIB UH)

ADIB - 1Q25 Earnings up 19% YoY (+16.4% QoQ) On Higher NFI Despite Higher Tax, Above Our Estimates

Shareholders profit up 19.1% YoY to AED1.6bn (+16.4% QoQ; +13.1% vs estimates). Net interest income up 3.7% YoY to AED1.75bn (+5.3% QoQ; +4.8% vs...

International Securities

Adib -4Q24 Earnings Down 2.1% YoY (-9.7% QoQ), Beat Our Estimates on Lower-Than-Expected Tax Charge

Shareholders profit down 2.1% YoY to AED1.39bn (-9.7% QoQ; +6.3% vs estimates). Net interest income up 2.9% YoY to AED1.66bn (+5.2% QoQ; +8% vs...

International Securities

MENA: From Structural Underweight to Selective Rebuild

MENA stays structurally underweight but participation is rising, led by UAE and Saudi. Real Estate and Financials drive inflows, with Emaar, Al...

Steven Holden

UAE Banks: Macro Outlook Rendering Valuations Attractive

UAE Banks are currently trading at median FY2025e P/B and P/E of 1.4x and 10.1x, respectively, undervalued compared to regional banks (2025e P/B...

International Securities

Quarterly Results Preview - 1Q25e Banking Sector

We expect FAB to report shareholders’ profit of AED4.2bn in 1Q25e, flat YoY and QoQ, as higher operating income is expected to be off-set by higher...

International Securities

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