Report Industry Investment Rating - No specific industry investment rating is provided in the report. Core Viewpoints - Yesterday, real - money and PB accounts showed buying interests in Australian, Chinese, European, Japanese and Korean bank/corporate FRNs before the Chinese New Year holiday. The report maintains a buy recommendation on BSFR 6.375 Perp and BSFR 35 [2]. - FABUH's FY25 net profit surged 24% year - on - year to AED21.1bn, and the report maintains a buy on FABUH 6.32 04/04/34 and FABUH 5.804 01/16/35 [3][7]. - Fitch upgraded China Vanke to CC from RD on completion of distressed debt exchange and affirmed Vanke HK's CC rating [2][17]. Summary by Directory Trading Desk Comments - Buying interests in FRNs: Real - money and PB accounts sought to lock in yields on Australian, Chinese, European, Japanese and Korean bank/corporate FRNs before the Chinese New Year holiday [2]. - Middle East bonds: BSFR 6.375 Perp and BSFR 35 edged 0.1pt higher; FABUH 34 - 35s were unchanged to 0.2pt higher [2]. - Global sales: Global real - money and PB accounts sold long - end KSAs and long - dated China TMT papers (maturities > 20 years) [2]. - Greater China higher - yielding space: WESCHI 28/LIFUNG 5.25 Perp closed 0.3 - 0.4pt higher; FAEACO 12.814 Perp/EHICAR 26 - 27 were down by 0.1 - 0.3pt [2]. - Chinese properties: VNKRLE '27 and '29 led the space and rose 1.3 - 1.6pts; YTD, VNKRLEs have surged 10.4 - 11.0pts, supported by loans and upfront cash payments. FUTLAN 28/FTLNHD 27 were unchanged to 0.2pt higher, FTLNHD 26 was 0.2pt lower. Seazen expects to get an offshore - debt quota before Chinese New Year and could launch a USD bond offering. DALWAN 28s were unchanged to 0.1pt higher [2]. - SE Asian space: VLLPM 27 - 29 dropped 1.0 - 1.6pts; ACPM 3.9 Perp was 0.7pt lower; INDYIJ 29/IHFLIN 27 - 30/VEDLN 28 - 33s and the ReNew Energy complex were unchanged to 0.2pt higher; GLPSPs traded 0.2 - 0.3pt higher; Yankee AT1s recovered by 0.1 - 0.4pt; LGFVs were stable [2]. Market Data in the Morning - Asian IG credits were unchanged to 2bps wider. There was better selling on MEITUA and Korean IG names. NWDEVL 4.8 Perp was 0.8pt higher. YPCORP 29/VLLPM 29 were 0.6pt lower. HYSAN 4.85 Perp leaked 0.5pt [3]. - FABUH's FY25 net profit surged 24% yoy to AED21.1bn from higher income across all segments [3]. - ADSEZ's committee approved a tender offer to purchase up to USD345.137mn of ADSEZ 4 07/30/27 and up to USD150mn of ADSEZ 3.1 02/02/31. ADSEZ 27 - 29 edged 0.3pt higher [3]. Top Performers and Underperformers - Top Performers: VNKRLE 3.975 11/09/27 rose 1.6pts to 31.6; VNKRLE 3 1/2 11/12/29 rose 1.3pts to 30.3; PMBROV 11 1/2 02/18/30 rose 0.7pts to 97.5; HCELEC 4.65 12/29/26 rose 0.6pts to 66.8; LOGPH 5 1/4 02/23/23 rose 0.6pts to 11.1 [4]. - Top Underperformers: VLLPM 9 3/8 07/29/29 dropped 1.6pts to 43.0; VLLPM 7 1/4 07/20/27 dropped 1.0pts to 55.5; GARUDA 6 1/2 12/28/31 dropped 1.0pts to 91.5; CHGRID 4.85 05/07/44 dropped 0.8pts to 99.9; ACPM 3.9 PERP dropped 0.7pts to 66.4 [4]. Macro News Recap - On Monday, S&P (+0.47%), Dow (+0.04%) and Nasdaq (+0.90%) were higher. The 2/5 - year UST yield was lower. The 2/5/10/30 - year yield was at 3.48%/3.75%/4.22%/4.85% [6]. Desk Analyst Comments - FABUH's FY25 net profit surged 24% yoy to AED21.1bn from higher income across all segments. The report maintains a buy on FABUH 6.32 04/04/34 and FABUH 5.804 01/16/35, which offer c60bps yield pick - up over its senior unsecured bonds for similar tenor. The likelihood of FAB calling its T2s on their first call dates is high [7]. FAB's Financial Performance - Operating income: In FY25, FAB's operating income rose 16% yoy to AED36.7bn, mainly driven by a 36% yoy increase in non - interest income to AED16.4bn. Net interest income increased by 4% yoy to AED20.3bn [10]. - Cost - to - income ratio: It dropped to 22.4% in FY25 from 24.6% in FY24 [11]. - Net impairment charges: They fell 17% yoy to AED3.3bn, and net profit rose 24% yoy to AED21.1bn. ROTE improved to 19.2% from 16.8% in FY24 [11]. - Asset quality: NPL ratio declined to 2.2% as of Dec '25 from 3.4% as of Dec '24, while NPL coverage ratio increased to 108% from 96% [12]. - Capital adequacy: CET1 pre - dividend ratio was 14.5% as of Dec '25, CET1 post - dividend ratio was 13.3% (down from 13.7% as of Dec '24, still above the regulatory minimum of 11.6%). FAB guided CET1 ratio to be above 13.5% in FY26 [12][13]. Offshore Asia New Issues - Priced: No offshore Asia new issues were priced today [14]. - Pipeline: Central Nippon Expressway Co Ltd plans a 5 - year USD bond with pricing of MS + 64 and an issue rating of A1/ - / - ; Xingye Gold (Hong Kong) Mining plans a 3 - year USD bond with a 7.7% coupon and an unrated issue [15]. News and Market Color - Onshore primary issuances: 80 credit bonds were issued yesterday with an amount of RMB61bn. Month - to - date, 687 credit bonds were issued with a total amount of RMB580bn, a 4998.2% yoy increase [17]. - Other news: Adani Energy Solutions secured a loan from Japanese banks; Mirae Asset Securities' FY25 operating revenue rose 22% yoy; Seazen expects an offshore - debt quota; HD Hyundai Heavy won an order; Minmetals Land privatization offer was approved; NIO recalls EVs; PTT Global Chemical's 2025 adjusted EBITDA fell 34.4%; Fitch upgraded China Vanke [17].