External broker reports(aggregated public sources), International Securities

International Securities

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External broker reports(aggregated public sources)

MENA: From Structural Underweight to Selective Rebuild

Thematic (Sector/Industry)

United arab emirates Financials / 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><p><em>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.</em></p>

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