The National Bank of Abu Dhabi has stated that it feels the Banking sector is finally starting to balance itself following the crises of recent times. The UAE’s stock market is looking a lot more positive and analysts predict a period of stability that has been absent for a long time.
Trading markets are now reflecting the true value of company’s and there is less unrealistic buoyancy where company’s are 200% higher than their recorded book value as was an all too common scenario during the global financial crises.
A recent study looked at five Banks in Abu Dhabi and three Banks in Dubai and their studies found that the National Bank of Abu Dhabi (NBAD) was the best bank in Abu Dhabi . The study also found that its book value was Dh22.4bn and the market value of its shares has increased by over 30% and the total value of its shares representing capital is 2.174million at present.
Consequently the book value of the First Gulf Bank was DH22billion which is an increase of 33%. The National Bank of Umn Al Quwain was up by 87%. Overall the study concluded that the future for the country’s banks definitely appears to be more positive than it has for quite sometime.Paul Holdsworth, Staff Writer, Gulf Jobs Market News