Complex Made Simple

First Gulf Bank’s price target cut by AlembicHC

AlembicHC has said the impact of the UAE central bank's new retail regulations on First Gulf Bank's income from fees and commissions (F&C) will be greater than expected at 8%, Reuters has reported. The brokerage also reduced its 2012 growth rate forecast for the lender, the UAE's second-largest bank by market value, to 1% from 5%, and price target to Dhs22.5 from Dhs22.7. "But retail fees are only a small proportion of total revenue, and banks may increase net interest margins to offset part of the pressure on fees and commissions," the brokerage, which rates First Gulf "overweight," said.