EM CEEMEA CREDIT: Commercial Bank of Dubai: Q3 earnings, supportive for credit
Oct-22 11:58
(CBDUH; Baa1/NR/A-)
- Supportive take for credit whilst asset quality keeps its improving the momentum. We read into the results focusing on Q3 and quarterly evolution.
- Operating profits remain on a growth trajectory, sequentially +8.4% q/q at AED1,164mn, on the back of growth in op Inc (+8.5% q/q at AED1.577bn) and despite an acceleration in cost trajectory vs previous quarter (op Exp +9% q/q). PBT shows +1.9% q/q at AED970mn. In more detail, NII shows +4.4% sequentially at AED1,074mn and other income +18.9% q/q at AED503mn.
- Meaningful balance sheet expansion with total assets at the end of the quarter exceeding AED163bn, +8.5% sequentially, that is +16.5% y/y. Net loans and advances were +5.4% q/q, partly financed by an increase in the deposit base (+4.8% q/q).
- Looking at asset quality, NPLs continue to show an improving trajectory to a low 3.50%. Coverage remains adequate at 98.93%.
- Capital position remains adequate with CET1 broadly stable at 12.91% (+50bp sequentially) and CAR at 14.70% (+47bp sequentially).
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US TSY OPTIONS: CORRECTION: Large Dec'25 10Y Call
Sep-22 11:56
- Trading desks correct earlier post:
- Buy (not sale) 50,000 TYV5 114 call print at 33 (not 32) vs. 112-27.5/0.31%
BOE: All seven non-dissenting MPC members to speak before end of September (2/2)
Sep-22 11:41
- Outside of these three swing members we will also hear from Pill, Greene, Lombardelli and Mann before the end of the month. Their views will all be watched for the medium-term outlook, but with all four of these members hawkishly dissenting in August there is less potential for them to be market moving unless they were to shift to a more dovish direction (which we think unlikely at this point.
- Pill is due to appear on a BIS-ECB-SUERF panel today (starting 13:30BST) entitled ‘Monetary policy frameworks: recent developments and outlook – an international comparative view’ and then will participate in a fireside chat tomorrow at the Inaugural Pictet Research Institute Symposium ‘Challenges of Monetary Policy in an Environment of High Fiscal and Geopolitical Uncertainty (10:00BST). There will be text released alongside the latter event.
- Greene is due to speak on Wednesday in a speech entitled ‘Supply shocks and monetary policy’ (17:30).at University of Glasgow Business School.
- Lombardelli will appear on Tuesday 30 September on the “Monetary policy and uncertainty” panel alongside Riksbank Governor Thedéen and Banque de France Deputy Governor Bénassy-Quéré at the Bank of Finland’s 4th international Conference on Monetary Policy.
- Mann will conduct a fireside chat at the Financial Times Future of Financial Intelligence conference with the topic “Geopolitical landscape context”, also on Tuesday 30 September.
BOE: All seven non-dissenting MPC members to speak before end of September (1/2)
Sep-22 11:38
- All seven of the non-dissenting MPC members are due to make public appearances before the end of September. We will be in particular watching comments from the three MPC members who we think will be pivotal in determining whether we will see a Q4 cut (Bailey, Breeden and Ramsden).
- Governor Bailey will appear in a fireside chat today but the topic will be supervision in the financial sector – not the natural forum for comments on monetary policy. Bailey’s next public appearance is currently scheduled for Friday 3 October – but again that is on “Macro-financial stability in a fragmenting world”. It is a keynote speech at the Klass Knott farewell symposium so he may be more likely to speak on monetary policy here.
- Dave Ramsden will appear as a panellist on the policy panel at the ECB / Federal Reserve Bank of Cleveland “Inflation: Drivers and Dynamics 2025 Conference” on Monday 29 September. Alongside him on the panel will be ECB Chief Economist Lane and the Cleveland Fed’s Hammack (2026 voting member). We place Ramsden as the most dovish member on the MPC who did not vote for a cut last week – and will be looking for confirmation of this next week.
- Deputy Governor Breeden rarely speaks on monetary policy but her speech scheduled for Tuesday 30 September at Cardiff University is provisionally entitled “The Monetary Policy Outlook”. This will certainly be a key speech. She sounded slightly more dovish than Governor Bailey in our view following her testimony ahead of the TSC on 3 June but hasn’t really spoken on monetary policy since. Her tone is likely to be pivotal for markets, particularly if she strikes a dovish tone given current market pricing.
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