“No change to the fundamental story; we retain our ‘Hold’ recommendation. We have retained our fair value for UNB at AED 6.90 per share as we have kept our forecasts broadly intact. We anticipate that 2014 will be a good year for UNB as we expect a) a further decline in loan provisioning (-33 per cent in 2014F) b) increased profitability at the UNB’s brokerage subsidiary on the back of strong volumes on the DFM and ADX exchanges and c) an end to revaluation losses on property. We see upside potential of 13 per cent for the stock, and therefore our recommendation is ‘Hold.’.
Wednesday 25, June 2014 by Robin Amlôt