EFG-Hermes assigned a "neutral" rating to Abu Dhabi's First Gulf Bank, saying the company's results, though ahead of the investment bank's high expectations, were a little short on quality.
Net interest income was in line with expectations, rather than ahead, as loan growth sank back a little from the previous levels and spreads took a hit from competitive pressure and higher liquidity, EFG-Hermes said in a note.
The investment bank has a long-term fair value of Dh19.39 on the stock.
On January 29, the bank reported a 57 per cent rise in fourth-quarter net income. (Reuters)
EFG-Hermes rates First Gulf Bank neutral