Jul 24 2012
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MARKET TALK: Growth, Asset Quality Key Challenges For ENBD - Beltone
Tuesday, Jul 24, 2012
0824 GMT [Zawya Dow Jones]--Beltone Financial says growth and asset quality continue to be the two key challenges that Emirates NBD currently faces. Referring to the new U.A.E. central bank circular, Beltone notes ENBD could be considered as one of the most negatively affected banks in the country. Reckons the bank's exposure to Dubai government exceeds the single exposure limit of 25% and the aggregate limit of 100% of the Basel II capital base; says it also exceeds the defined 15% funded limits. ENBD's top executive said Monday that the bank is in talks with the central bank about regulations limiting the amount domestic banks can lend to government related entities, with an extension of the Sept. 30 deadline to comply with the new rules a possibility. Beltone lowers ENBD's rating to hold from add due to uncertainties surrounding the effect of the new central bank circular on bank's growth going forward. Maintains target price at AED3.39. Shares trade +0.8% at AED2.64. (firstname.lastname@example.org; Twitter: @ZDJnews)
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