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Union National Bank
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3Q09 Review – A Strong Quarter
• UNB reported net income of AED358 million, 68% and 64% above our expectations and the street, respectively, helped by better-than-expected fee/investment income and loan loss provisioning.
• We increase our net income estimate by 35% in 2009 and 21% in 2010.
• We reiterate our Buy recommendation and increase our target price (TP) to AED 4.90 from AED 4.70.
We reiterate our “BUY” recommendation on the stock and raise our TP to AED 4.90 from 4.70, giving an upside potential of 40%. The stock offers attractive valuation, trading at a FY10e PB of 0.6x vs. FY10e ROE of 13%, a 42% and 23% discount to its implied PB and UAE sector average, respectively. We view 3Q09 earning as strong with stable core operating performance and benign credit charges.
Click here to download the complete report
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All data at market close |
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