External broker reports(aggregated public sources), International Securities

International Securities

External broker reports(aggregated public sources)

International Securities’ equity research analysis and advisory have been a vital source of market intelligence for our distinguished clients over the years. The equity research team’s main objective is to cover listed equities and to provide thoughtful, insightful, differentiated and timely research that can help clients make informed decisions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

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

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

<ul><li>MSCI UAE standard index expected to see an overall inflow of USD303.2mn.</li><li>Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index </li><li>All existing Standard Index constituents are expected to witness slight inflows in proportion of their weight in the Index. </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.

MSCI UAE standard index expected to see an overall inflow of USD303.2mn.Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index All existing Standard Index constituents are expected to witness slight inflows in proportion of their weight in the Index. 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.

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

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

MSCI EM Feb-2025 Index Review

Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index

International Securities

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