Abu Dhabi Commercial Bank's Q3 financials

Following on last week’s article analysing the Q3 financial performance of Dubai Islamic Bank, Union National Bank and Mashreq, on Wednesday I had a look at how the other banks are performing and was pleasantly suprised when I visited the Abu Dhabi Commercial Bank website. ADCB’s good investor relations The pleasant surprise was not that ADCB had its financials up; I

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Earnings Quality vs Quantum of Earnings

The third quarter (Q3) is over and earnings season has begun as listed companies release their Q3 financials. We’ll take a deep look at these financials, starting with the heart of the economy – the banking sector. My main aim here is to look at the picture that the financials give and try to understand what might be going on

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Fast asset growth can mask weak margins

Growth for the sake of growth is the ideology of the cancer cell. – Edward Abbey A recent Financial Times (FT) article discussed the “great aviation disrupters of the 21st century” referring to Emirates, Etihad Airways and Qatar Airways. The article was analysing deteriorating performance amongst these three once high performing carriers. Of particular interest are two points: The first

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Your idea of success is completely wrong

There is this idea that success is 100% correct decision making. For some people, they understand this to be 90% or even 80% correct decision making. This idea is completely wrong. A success rate of 56%, implying 44% incorrect decisions, is a great result. Here’s why. Let’s simplify things. Assume that you are the chief executive of a company and that each decision you

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Chelsea Football Club Innovates Financially

I just found out that Chelsea Football Club is applying ideas from financial leasing to their football player lending programme. I was shocked. The analysis is quite interesting. To me at least. The movie Moneyball, based on the book by the same name, showcased the use of financial ideas in sports, in this particular case baseball. There are two parts to it.

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