ArabFinance: Al Ahly Pharos Securities Brokerage Research has maintained its “Overweight” recommendation on Egyptian Gulf Bank (EG Bank) (EGBE) on a fair value (FV) of $0.55 per share, with a positive outlook, according to a report.

The bank is expected to witness a slight recovery in non-interest income during the second half (H2) of 2022 if the Central Bank of Egypt (CBE) canceled the exemption of fees and commissions initiative after June 2022, Al Ahly Pharos added in the report.

According to the research firm’s estimates, the bank is projected to see a limited growth in top-line due to marginal decreases in treasury allocation “to control the effective tax rate, lending momentum picks up, and interbank deposits increase”.

It is worth noting that EG Bank posted a standalone net profit of EGP 695.65 million for the full-year ended December 31st 2021, versus a net profit stood at EGP 625.23 million in 2020.

EG Bank is engaged in the provision of corporate, retail, and investment banking services through a network of 16 branches located across Egypt.