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Bond Market News

ADCB, Kuwait’s NBK and Sharjah Islamic Bank Report Strong Results

July 19, 2021

Abu Dhabi Commercial Bank (ADCB), National Bank of Kuwait (NBK) and Sharjah Islamic Bank reported strong results for the six months ended June.

  • ADCB reported a 76% jump in net profits to AED 2.52bn ($690mn) in 1H2021. Non-interest income rose 41% YoY to AED 840mn ($229mn) and cost to income ratio improved 150bp to 33.4% in Q2. Impairment charges were 1% higher to AED 678mn ($185mn). The bank’s NPL ratio stood at 5.86% vs. 5.16% in 1H2020. CAR and CET 1 ratios stood at 16.32% and 13.2%, up 1bp and 25bp YoY. ADCB’s bonds were stable – its 4.5% 2023s were at 105.8, yielding 0.93%
  • NBK reported a 45% YoY rise in H1 net profits to KWD 160.8mn ($534mn). Loans and advances grew 5.3% YoY to KWD 18.5bn ($61.5bn). Provisions for credit losses fell by 5% YoY to KWD 94mn ($313mn) while its NPL ratio rose 68bp to 2.45% during the same period. The bank reported its 2020 CAR and CET1 ratios at 18.4% and 16%. NBK’s 4.5% Perps were flat at 104.6, yielding 3.35%.
  • Sharjah Islamic Bank reported a rise in H1 net profits to AED 289.5mn ($79mn), up 15.2% YoY despite an increase of 58% in net impairment provisions to AED 127.8mn ($35mn). Net income on financing and investment products increased by 16.3% while expenses were flat. Its capital adequacy ratio (CAR) (Term of the Day, explained below) stood at 20.77%. The bank’s dollar bonds were flat with its 5% Perp at 104.6, yielding 3.73%
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