Local listed bank shares are undervalued compared to the banks’ healthy profitability and book value. The reasons behind this undervaluing are, largely, unrelated to the banks themselves, but are instead due to external factors. These factors include the country’s risk profile, the current macroeconomic conditions, and the lack of activity on the stock market. Louis Karam, Director of the Trading Desk at Cedrus Invest Bank said that bank share values are highly correlated to local and regional political and economic conditions. Yields on bank shares have grown to some extent over the last five years, making shares an attractive investment option. FFA Private Bank said in its ‘Equity Research’ report on local banks released last January: “We view banks as an interesting entry point given favorable dividend yields.” This trend…
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Lebanon Opportunities (Digital) - 1 Issue, Jul-18