Moody’s Investors Service affirmed the long-term and short-term foreign currency deposit ratings of Emirates NBD after it agreed to buy Turkey’s DenizBank for $3.2 billion, the biggest acquisition for Dubai’s top lender.
Moody’s, which maintained a stable outlook for Emirates NBD’s long-term deposit rating, said the acquisition will reap benefits for the Dubai lender, which is majority owned by the Investment Corporation of Dubai, the emirate’s sovereign wealth fund.
“The affirmation of ENBD's ba1 BCA reflects Moody's view that the Denizbank acquisition will have the potential to improve ENBD's profitability by broadening its regional franchise, increasing its growth opportunities and diversifying its earnings base,” Moody’s said.
The acquisition will also reduce Emirates NBD’s “large related party credit concentration to the Dubai government to around 32 per cent of gross loans, from 44 per cent at the end of 2017," the rating agency added.
Emirates NBD, which has operations in Egypt, Saudi Arabia, India, Singapore, the United Kingdom, and representative offices in China and Indonesia, is expanding its footprint to boost revenue amid limited opportunities for growth in the UAE market, where more than 50 lenders operate.
The deal, which is subject to regulatory approval in Turkey, Russia, the UAE and other relevant jurisdictions, is expected to close in 2018.
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Read more:
Emirates NBD to buy Turkish lender DenizBank from Sberbank for $3.2bn
Dubai’s Emirates NBD reports 27% rise in first quarter net profit
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But the take-over faces challenges in Turkey.
“Challenges from the acquisition include exposure to the weaker Turkish operating environment, as well as Denizbank's modest capitalisation relative to its problem loans ratio, that is above the Turkish system average,” rating agency said.
“Moody's expects that the operating environment faced by Turkish banks will remain challenging because of lower economic growth, unorthodox monetary policy proving ineffective in fighting double-digit inflation, currency depreciation, continuing erosion of institutional strength and high unemployment.”
RACE CARD AND SELECTIONS
5pm: Maiden (PA) Dh80,000 1,200m
5,30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,200m
6pm: The President’s Cup Listed (TB) Dh380,000 1,400m
6.30pm: The President’s Cup Group One (PA) Dh2,500,000 2,200m
7pm: Arabian Triple Crown Listed (PA) Dh230,000 1,600m
7.30pm: Handicap (PA) Dh80,000 1,400m
The National selections
5pm: RB Hot Spot
5.30pm: Dahess D’Arabie
6pm: Taamol
6.30pm: Rmmas
7pm: RB Seqondtonone
7.30pm: AF Mouthirah
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
