Banking stocks are expected to be under pressure this morning as Emirates NBD, the latest bank to report first quarter results, saw impairments more than double.
The biggest lender by assets in the country said its net profit for the first-quarter climbed 27 per cent, as it made gains from the sale of a 49 per cent stake in Network International to private equity company Abraaj Capital in March.
But it also booked an impairment charge of Dh1.37 billion in the first quarter compared with Dh555 million a year ago.
Shares in Emirates NBD ended yesterday 1.1 per cent down to Dh3.76, trimming the gains it has made this year to 36 per cent. The shares were flat this morning.
First Gulf Bank also missed first quarter analysts' forecasts when it posted a 4.8 per cent decline in quarterly net profit to Dh875 million.
"The stock is very cheap; our target price offers 26 per cent upside, the highest within the UAE," said Jaap Meijer, head of banking research at Alembic HC.
"[But] FGB is one of our top picks within the MENA banks sector."
FGB's shares ended yesterday 2.2 per cent down to D17.6, but were flat this morning.
The Dubai Financial Market General Index was up 0.4 per cent to 1,645.01 points and the Abu Dhabi Securities Exchange was flat at 2,691.79 points.
In Kuwait, Global Investment House said that the Dubai court ruled in its favour for a $250m (Dh918m) dispute and ordered National Bank of Umm al Qaiwain to pay the $250m in addition to about $54.6m in interest.
Shares in Global are due to resume trading today after being suspended for two days.
