Cairo – Mubasher: Pharos Research has maintained ‘Overweight’ recommendation for Export Development Bank of Egypt's (EBE) stock at a fair value (FV) of EGP 18.50 per share.
“EBE is trading at attractive multiples compared to peers,” the research firm said in a recent report.
The bank’s robust quarterly earnings were driven by a hike in topline and “healthy balance sheet growth”, the report added.
The Egyptian lender reported a 45% year-on-year surge in bottom line for the fourth quarter of fiscal year 2017/2018, registering EGP 230 million.
The increase in bottom line was mainly helped by a jump in net interest income by 24% quarter-on-quarter, as well as operating expenses that fell by 3% on a quarterly basis in Q4-17/18, Pharos highlighted.
On the other hand, the bank’s non-interest income slashed by 15% quarter-on-quarter as result of a sequential decline in investment income by 77%.
EBE last posted a net profit of EGP 790.32 million in the July-June period of FY17/18, versus EGP 540.07 million in the same period a year earlier.