Abu Dhabi Islamic Bank Egypt (ADIB Egypt) reported a surge in first quarter (Q1) earnings for the year 2019, triggering a rise in the company’s shares on Wednesday.
The bank’s Q1 2019 net profit amounted to 128.6 million Egyptian pounds ($7.54 million), compared to 115.3 million pounds in Q1 2018, an increase of 11.54 percent.
Farida Elaskalany, equity research analyst at Pharos Securities Brokerage, told Zawya by email that the bank’s preliminary results show a strong bottom line for Q1 2019, “which may probably be due to higher net-interest margins (+4% quarter-on-quarter)”.
The bank’s Q1 2019 net interest income amounted to 707 million pounds, compared to 566.8 million pounds in Q1 2018, a 24.74 percent increase.
The bank’s shares were trading 1.726 percent higher at 11.2 pounds by 15:33 GST but have dropped 2.53 percent so far since the start of the year.
“We have an overweight recommendation on ADIB on FV (fair value) of EGP15.10/share,” Elaskalany said.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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