Hilbroy Advisory Inc: UAE Banks Have Challenging Year Ahead: by Jean-Francois Amyot
Montreal, 4 November 2011 Hilbroy Advisory Inc. (Frankfurt: 2H0) –Dubai International rating agency Moody’s Investors Service said yesterday that the next 12 to 18 months could be challenging for the UAE banking system in terms of asset quality and profitability.
The rating agency said its outlook for the banking system is negative because of the ongoing trends of corporate deleveraging, asset quality challenges and the subdued profitability of UAE banks in the wake of continued provisioning needs. Moody’s clarified that the outlook does not represent a projection on any change in ratings; Jean-Francois Amyot.
The rating agency expect UAE to post real GDP growth of 3 per cent for 2011 and 2012, supported by higher oil revenues and government spending, well below the 7 per cent yearly average in the pre-crisis period. Additionally, on a more macro level, the UAE’s dependence on oil revenues and core sectors of trade, services, global logistics and tourism render the local economy more sensitive to global risk scenarios of weakened growth and recession.
UAE banks have increased their capital over the past two years, and the system average Tier 1 for year-end 2010 was 14.3 percent. Shareholder’s equity is also relatively high on a global basis at around 12.6 per cent of total assets. The rating agency considers that the UAE banks’ liquidity metrics to be significantly improved with the ratio of liquid assets to total assets held reaching almost 25 per cent as of year-end 2010.
Although profitability is recovering, it remains constrained by cautious loan growth and the ongoing provisioning that is required to cover problem loans. These trends will continue to dampen banks’ net profits for 2011 and into 2012.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential: Jean-Francois Amyot.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean-Francois Amyot
Hilbroy Advisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as “anticipates”, “believes”, “could”, “expects”, “intends”, “may”, “should”, and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
