External broker reports(aggregated public sources), International Securities

International Securities

External broker reports(aggregated public sources)

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Thematic (Sector/Industry)

<ul><li>We expect FAB to report shareholder’s profit of AED3.96bn in 2Q24e, down 4.8% YoY but up 3.1% QoQ, as a result of higher net interest income whilst noninterest income could fall QoQ.</li><li>Net interest income is expected to grow by 4.3% QoQ to AED5.1bn, led by the growth in loan book and a slight improvement in NIMs.</li><li>Non-interest income is expected to fall QoQ to AED2.6bn, as a result of a fall in forex income, whilst commissions, fee and investment income might stay flat.</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 shareholder’s profit of AED3.96bn in 2Q24e, down 4.8% YoY but up 3.1% QoQ, as a result of higher net interest income whilst noninterest income could fall QoQ.Net interest income is expected to grow by 4.3% QoQ to AED5.1bn, led by the growth in loan book and a slight improvement in NIMs.Non-interest income is expected to fall QoQ to AED2.6bn, as a result of a fall in forex income, whilst commissions, fee and investment income might stay flat.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.

Equity Bottom-Up

Abu Dhabi Islamic Bank PJSC / Equity Bottom-Up

<ul><li>ADIB reported 1Q24 shareholder’s profit of AED1.3bn, better than estimates, due to lower operating cost and lower impairment provisions</li><li>NIMs increased to 4.67%, opposite to peers reporting NIM contraction in 1Q24. We believe NIMs could peek in coming quarter with funding cost starting to increase with high interest rate expectations and already high CASA</li><li>Maintain Hold with fair value of AED11.40/sh implying a 0.5% upside, as valuation premium over peers limit further upside, especially when NIMs are expected to peek</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.

ADIB reported 1Q24 shareholder’s profit of AED1.3bn, better than estimates, due to lower operating cost and lower impairment provisionsNIMs increased to 4.67%, opposite to peers reporting NIM contraction in 1Q24. We believe NIMs could peek in coming quarter with funding cost starting to increase with high interest rate expectations and already high CASAMaintain Hold with fair value of AED11.40/sh implying a 0.5% upside, as valuation premium over peers limit further upside, especially when NIMs are expected to peekContent 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 1Q24 Review: Earnings up 31% YoY (-6.5% QoQ), Beat Estimates

<ul><li>We expect FAB to report shareholder’s profit of AED3.45bn in 1Q24e, down 6.5% YoY and down 5.4% QoQ, as a result of the implementation of new UAE corporate tax.</li><li>Net interest income should improve QoQ, but non-interest income could fall YoY and QoQ.</li><li>Net interest income should grow 3.9% QoQ to AED4.9bn, led by a growing loan book and a slight improvement in NIMs. </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 shareholder’s profit of AED3.45bn in 1Q24e, down 6.5% YoY and down 5.4% QoQ, as a result of the implementation of new UAE corporate tax.Net interest income should improve QoQ, but non-interest income could fall YoY and QoQ.Net interest income should grow 3.9% QoQ to AED4.9bn, led by a growing loan book and a slight improvement in NIMs. 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.

<ul><li>Growing UAE economy should provide the necessary impetus for the UAE banks to grow locally, whilst the option to expand globally remains open</li><li>UAE banks remain undervalued within the wider GCC market despite better-than-expected performance in FY23, as the impact of the new UAE corporate tax and NIMs contraction as a result of fall in interest rates worry investors</li><li>We remain optimistic on UAE banks as we see earnings to stabilize at current levels after absorbing the impact of UAE corporate tax in FY24 and NIM contraction in FY25; maintain ‘Buy’ on FAB, ENBD and ADCB, and ‘Hold’ on ADIB and DIB</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.

Growing UAE economy should provide the necessary impetus for the UAE banks to grow locally, whilst the option to expand globally remains openUAE banks remain undervalued within the wider GCC market despite better-than-expected performance in FY23, as the impact of the new UAE corporate tax and NIMs contraction as a result of fall in interest rates worry investorsWe remain optimistic on UAE banks as we see earnings to stabilize at current levels after absorbing the impact of UAE corporate tax in FY24 and NIM contraction in FY25; maintain ‘Buy’ on FAB, ENBD and ADCB, and ‘Hold’ on ADIB and DIBContent 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.

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<li>We expect ADNOC Drilling to post 4Q23e profits of USD263mn, up 2% QoQ and 13% YoY.</li>
<li>Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.</li>
<li>We expect total rig count to reach 129 rigs, compared to 124 rigs and 115 rigs in 3Q23 and 4Q22, respectively.</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 ADNOC Drilling to post 4Q23e profits of USD263mn, up 2% QoQ and 13% YoY.
Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.
We expect total rig count to reach 129 rigs, compared to 124 rigs and 115 rigs in 3Q23 and 4Q22, respectively.

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)

UAE Banks 2Q24 Quarterly Results Preview

We expect FAB to report shareholder’s profit of AED3.96bn in 2Q24e, down 4.8% YoY but up 3.1% QoQ, as a result of higher net interest income whilst...

International Securities

ADIB 1Q24 Review: Earnings up 31% YoY (-6.5% QoQ), Beat Estimates

ADIB reported 1Q24 shareholder’s profit of AED1.3bn, better than estimates, due to lower operating cost and lower impairment provisions

International Securities

1Q24 Quarterly Result Previews

We expect FAB to report shareholder’s profit of AED3.45bn in 1Q24e, down 6.5% YoY and down 5.4% QoQ, as a result of the implementation of new UAE...

International Securities

UAE Banks: Keep calm and carry on

Growing UAE economy should provide the necessary impetus for the UAE banks to grow locally, whilst the option to expand globally remains open

International Securities

4Q23 Quarterly Result Previews

Our 4Q23e result would take FY23e profit to USD967mn, up 21% YoY and towards the high end of the management’s guided range of USD850mnUSD1bn.

International Securities

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