National Bank of Abu Dhabi (NBAD) faces a possible watershed year as its growth aspirations bump up against new lending limits imposed by the Central Bank.
The bank is most tied to the Abu Dhabi Government's spending plans, giving it scale to grow faster than many domestic rivals, analysts from Deutsche Bank wrote in a research note.
"NBAD's close ties to the Abu Dhabi Government (a 70 per cent shareholder) and perceived financial strength have provided the bank with a significant funding cost advantage relative to peers, which in turn has enabled the bank to generate healthy margins without taking excessive credit risk," the report said.
No comments:
Post a Comment