Monday 7 January 2013

NBAD Soars on Bets Mortgage Caps to Be Delayed: Abu Dhabi Mover - Businessweek

National Bank of Abu Dhabi PJSC surged to a seven-year high on bets lenders in the United Arab Emirates will convince the central bank to delay the implementation of new caps on mortgage lending.

Shares of the U.A.E.’s second-biggest bank by assets soared 3.7 percent to 11.35 dirhams, the highest level since April 2006, at the close in Abu Dhabi. The stock was the biggest gainer on the emirate’s benchmark ADX General Index (ADSMI), which slipped 0.2 percent. In neighboring Dubai, Emirates NBD, the country’s biggest bank by assets, rallied 2.8 percent.

U.A.E. banks will ask the central bank to delay the plan announced at the end of last year by 30 days, two bankers familiar with the matter said yesterday. The rules limit mortgages for expatriates to 50 percent of property value for a first home, while U.A.E. citizens can finance as much as 70 percent via home loans. There were previously no restrictions and some banks gave loans of as much as 90 percent of the property value.
NBAD Soars on Bets Mortgage Caps to Be Delayed: Abu Dhabi Mover - Businessweek

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