Wednesday, May 23, 2012
1243 GMT [Zawya Dow Jones]--Investors focus too much on Middle Eastern banks' reported capital adequacy ratios, which incorporate low-quality capital including subordinated debt, Dubai's Arqaam Capital says in a report. Stripping away preference shares, subordinated debt and making a number of other adjustments, Abu Dhabi Commercial Bank, Emirates NBD, Abu Dhabi Islamic Bank and several others come in with a "tangible equity ratio" below 12%. These lenders "may have to reduce their [dividend] pay-out, cut their growth or raise common equity to address this shortfall," Arqaam says. (asa.fitch@dowjones.com)
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(END) Dow Jones Newswires
23-05-12 1243GMT
