Abu Dhabi: First Gulf Bank PJSC rallied the most in five months after a 14 per cent increase in second-quarter profit buoyed the company’s outlook this year.
First Gulf Bank’s net income rose to Dh1.02 billion from Dh890 million a year earlier. That beat the mean estimate of five analysts, according to data compiled by Bloomberg.
The shares rallied 3.7 per cent, the most since March 1, to Dh9.75 at the close in Abu Dhabi. The stock was the biggest advancer by both index and percentage points on the Abu Dhabi ADX General Index, which rose 0.8 per cent. The stock has been the best-performer on the index in the past month with a gain of 15 per cent and has advanced all but one day since second-quarter results were announced July 24.
The bank “always used to be Western institutions’ top pick of United Arab Emirates banks and after a period in the wilderness that sentiment seems to be returning,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes Holding SAE. “It also remains one of our top picks subsequent to second-quarter numbers offering positive surprises in fee income and loan growth.”
UAE banks are recovering after the global financial crisis slowed lending, hurt investment-banking revenue and led to an increase in bad loans. Lending by UAE’s banks, excluding provisions, rose 0.3 per cent in the five months through May, while customer deposits increased 5.2 per cent, according to data from the country’s central bank. About 2.93 million First Gulf Bank shares exchanged hands today, compared with 264,453 shares yesterday.
Sixteen analysts recommend investors buy the shares, while one says hold, according to data compiled by Bloomberg. The company may post a 5 per cent increase in 2012 profit to 3.91 billion dirhams, according to the mean estimate of 13 analysts on Bloomberg.
