|24 July, 2018

ADIB Egypt reports rise in first quarter earnings, shares follow

The bank’s shares were trading 1.726 % higher at EGP11.2 by 15:33 GST

An employee counts Egyptian pounds in a foreign exchange office in central Cairo, Egypt, November 3, 2016. Image used for illustrative purpose.

An employee counts Egyptian pounds in a foreign exchange office in central Cairo, Egypt, November 3, 2016. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

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)

(gerard.aoun@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

More From Markets