Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

Emirates NBD Bank PJSC / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/27001" target="_blank" data-smartkarma-citation="entities:27001:1">Emirates NBD PJSC (EMIRATES UH)</a> is a leading player in the UAE financial sector and (somewhat fractured) GCC. The bank is active in consumer and corporate banking as well Islamic services, as asset management, brokerage, private banking, card processing and trade finance.  The bank acquired Dubai Bank in 2011.This strong MENA franchise is underpinned by majority ownership from the government of Dubai. We do not rule out management extending this franchise across MENA.Emirates NBD leads the way in UAE with technological change, having inaugurated the first digital bank (Liv.) in the region, face video banking, a SkyShopper e-commerce portal, voice-based virtual chatbot, a blockchain network for remittances and trade finance, an automated loan decision-making system, payment innovations, interactive teller machines, and a digital fintech Future Lab etc.Since the GFC, Emirates NBD has made notable headway on fortifying its financial strength (above all its Capital and Asset Quality) and modernising its infrastructure and proposition.Shares have performed very well this year. However, we see continuing upside given the market pricing (undervaluation) of the bank’s Profitability as well as other key variables.A high PH Score™ of 8.3 signals that share price should continue to move higher, reflecting positive fundamental signals and valuation.<div class="content-highlight">PH Score™  encompasses signals from Profitability, Operating Efficiency, Liquidity, Capital Adequacy, Asset Quality, and Provisioning. The scores lie between 0 and 10, with higher scores representing more positive signs.</div>

Emirates NBD PJSC (EMIRATES UH) is a leading player in the UAE financial sector and (somewhat fractured) GCC. The bank is active in consumer and corporate banking as well Islamic services, as asset management, brokerage, private banking, card processing and trade finance.  The bank acquired Dubai Bank in 2011.This strong MENA franchise is underpinned by majority ownership from the government of Dubai. We do not rule out management extending this franchise across MENA.Emirates NBD leads the way in UAE with technological change, having inaugurated the first digital bank (Liv.) in the region, face video banking, a SkyShopper e-commerce portal, voice-based virtual chatbot, a blockchain network for remittances and trade finance, an automated loan decision-making system, payment innovations, interactive teller machines, and a digital fintech Future Lab etc.Since the GFC, Emirates NBD has made notable headway on fortifying its financial strength (above all its Capital and Asset Quality) and modernising its infrastructure and proposition.Shares have performed very well this year. However, we see continuing upside given the market pricing (undervaluation) of the bank’s Profitability as well as other key variables.A high PH Score™ of 8.3 signals that share price should continue to move higher, reflecting positive fundamental signals and valuation.PH Score™  encompasses signals from Profitability, Operating Efficiency, Liquidity, Capital Adequacy, Asset Quality, and Provisioning. The scores lie between 0 and 10, with higher scores representing more positive signs.

Emirates NBD Bank PJSC

Emirates NBD: Underrated Transformation