Cairo - Mubasher: Pharos has upgraded its fair value evaluation (FV) of Abu Dhabi Islamic Bank (ADIB) to EGP 29 per share, according to a recent report.

The upgrade reflects the current valuation of the bank excluding any plans for a rights issue, since the research firm believes that the bank’s management would opt to go ahead with the planned rights issue by 2020, or at least not over the course of 2018, when the bank has built a stronger capital base, and after reporting positive retained earnings.

“We are bullish on ADIB’s favorable lending portfolio where retail financing captures more than 40% of total loan book, and favorable funding structure where CASA deposits constitute c.44% of total deposits to support margins amid the anticipated cut in rates early 2018,” the report noted.