Citigroup downgrades three UAE banks

Citigroup downgraded three UAE banks, including First Gulf Bank FGB.AD, and said slower economic activity should lead to subdued balance sheet and profit growth among the banks.

Citigroup said it was concerned about asset quality deterioration for the UAE banks given their significant exposure to the construction and real estate sector.

"The sector is likely to see further stress, particularly the smaller/non-government backed developers and sub developers," Citigroup added.