HC Securities lowered its rating on National Societe Generale Bank SAE (NSGB) to “neutral,” after Egypt’s second-biggest private bank by market capitalization reported a drop in its first-quarter net profit.
“The weaker bottom line reflected higher than expected provisions, lower than forecast non-interest income, and increased taxes,” analysts Ankur Khetawat and Kareem Ghaly said.
The analysts maintained their price target of 30.7 Egyptian pounds on NSGB stock. NSGB shares, after their recent rally, are now fairly priced relative to the sector, they added.
Shares of NSGB, which is 77 percent owned by France’s second biggest listed bank Societe Generale, had touched a year-high of 30 Egyptian pounds in March.
NSGB shares closed at 28.14 Egyptian pounds on Sunday on the Cairo Stock Exchange, Reuters reported.