Monday, 11 July 2011
The bank made a net profit of 836 million riyals ($222.9 million)) in the three months to June 30, compared to 766 million riyals in the same period a year earler.
Analysts surveyed by Reuters had, on average, expected the bank to post a net profit of 789.86 million riyals.
The bank said it made net profit of 263.3 million riyals ($70.21 million) in the three months to end-June, up from 250.5 million riyals in the same period a year earlier.
Analysts had forecast average quarterly profit of 245 million riyals, according to a Reuters poll.
Samba Financial Group (1090.SE), Saudi Arabia's second-largest lender by market value, reported a 9.7 percent decline in quarterly profits on Monday, in line with expectations.
Samba said second quarter net profit was of 1.102 billion riyals ($293.3 million) for the period June 30, compared to 1.22 billion riyals in the prior-year quarter.
Analysts had forecast average profit of 1.11 billion riyals, according to a Reuters survey.
|TASI (Saudi Stock Market)||6567.14||-0.22%|
|DFM (Dubai Financial Market)||1548.69||-1.18%|
|ADX (Abudhabi Securities Exchange)||2725.2||0.13%|
|KSE (Kuwait Stock Exchange)||6183.5||-0.45%|
|BSE (Bahrain Stock Exchange)||1318.94||-0.04%|
|MSM (Muscat Securities Market)||5985||-0.13%|
|QE (Qatar Exchange)||8496.87||0.10%|
|LSE (Beirut Stock Exchange)||1320.23||-0.34%|
|EGX 30 (Egypt Exchange)||5116.21||-2.93%|
|ASE (Amman Stock Exchange)||2101.51||0.02%|
|TUNINDEX (Tunisia Stock Exchange)||4326.76||0.01%|
|CB (Casablanca Stock Exchange)||11500.5||-0.67%|
|PSE (Palestine Securities Exchange)||496.99||-0.23%|
The Economist Intelligence Unit (EIU) insightful study on how the Arab Spring initiative is likely to play out, suggests a 60% probability of a gridlocked political environment that is unlikely to result in realizing the aspirations of the region's citizens.
The grim scenario suggests that the region will muddle along, making some progress in some segments of society and countries, but for the most part, the region will remain locked in conflict and struggle between the forces of Arab Spring and those vehemently opposed to it.
The three-year revolving credit facility pays a margin of 250 basis points over the benchmark rate, said the people, who declined to be identified before the terms are public. The five-year amortizing loan pays a margin of 275 basis points over the benchmark rate, which rises to about 315 basis points after including fees, the people said. The loans are being raised in both dollars and dirhams.
A spokesman for Dubai-based Majid Al Futtaim declined to comment.
Oman crude for immediate loading dropped 20 cents, or 0.2 percent, to $110.91 a barrel, Bloomberg data showed. Dubai oil for delivery in September fell 0.4 percent to $110.45. Murban declined 0.4 percent to $114.75.
Saudi Arabian Oil Co., the world’s largest state-owned oil company, will supply full contracted volumes of crude to Asian refiners in August, according to three refinery officials. Saudi officials pledged to provide more oil to refiners after a June 8 meeting of the Organization of Petroleum Exporting Countries failed to agree to raise output.
Yansab, also known as Yanbu National Petrochemical Co, rose 5.1 percent, reaching its highest level since May 3.
It reported a quarterly profit of SR963.67m ($257m), up from SR502.38m a year earlier due to higher product prices and sales.
The second-quarter curtain fell on the bond melodrama in the Middle East and North Africa with some players abiding by the script and others improvising, creating a collaboration that seemed to be out of tune.
Bond performers such as Qatar, UAE and Kuwait remain consistent, unlike Oman, Saudi Arabia and Bahrain. This reveals a vast variation between major GCC players, leaving the outlook for the second half of the year slightly vague.
Iraq's oil ministry, Shell, and Japanese project partner Mitsubishi have solved differences that had delayed the joint venture with Iraq's South Gas Co. since a draft agreement was struck in 2008.
'We have agreed on everything. The initial signing is on Tuesday,' said an Iraqi oil source.
But in a further blow, the ratings agency Moody's downgraded its rating on the lender by a notch to 'speculative grade'.
The deposit ratings at Arab Banking Corporation now fall under 'Ba1/not prime', from 'Baa3/Prime minus 3', essentially judging the lender to have 'substantial credit risk'. The main reason for the downgrading is the bank's continued reliance on Libyan deposits, and the potential constraints on its franchise - its 59 per cent majority shareholder, the Libyan central bank, remains subject to sanctions imposed by the UN, the US and the EU against the Libyan regime.
It is a simple question, but it has complex ramifications in private equity in this region.
At face value, anyone would support the principle of corporate governance as a good practice to be adopted by businesses to monitor management, ensure a proper decision-making tree and to protect shareholders' interests. However, beyond this general and almost intuitive proclamation, there are complexities at varying levels.
Dolphin Energy, a gas production and pipeline company based in Abu Dhabi, delayed a US$1.9 billion (Dh6.97bn) bond sale last month because of increasing uncertainty in global markets after holding meetings with investors.
Last week, Majid Al Futtaim Holding, a malls operator based in Dubai, also postponed a bond issue in the wake of the deteriorating European crisis.
Yields on treasury bills fell yesterday for the third straight auction after the central bank called off the first sale in the fiscal year that started July 1 when investors demanded higher returns. The average yield on 3.5 billion Egyptian pounds ($588 million) of nine-month notes dropped 21 basis points from last week’s auction, the most since October, to 12.681 percent, according to Finance Ministry data.
Finance Minister Samir Radwan’s decision to lower the budget deficit target by about 2.5 percentage points to 8.6 percent of economic output reduces the need for him to go to local markets for financing, helping to lower yields, economists at investment banks EFG-Hermes Holding SAE and CI Capital Holding say.
Balesh Kumar, the Enforcement Directorate special director who issued the notices, told the Financial Times that Etisalat had increased its stake in Swan Telecom – later renamed Etisalat DB – above 49 per cent without seeking regulatory approval. Under India’s FDI rules for the telecoms sector, a foreign group seeking to acquire a stake greater than 49 per cent needs approval from the Foreign Investment Promotion Board for the transaction.
Etisalat acquired a 45 per cent stake in Swan Telecom for $900m in 2008. However, the UAE group later bought another 5 per cent stake from Genex Exim, a small financial services group based in south India, increasing its overall stake above 49 per cent.
The subsidiary of the Abu Dhabi Tourism Authority has 'no assurance that the government would assist the group in repaying or refinancing any of its commercial debt,' according to the bond prospectus distributed at an investors meeting in Dubai yesterday and obtained by Bloomberg News at presentation to potential investors yesterday.
The TDIC's commercial debt amounted to Dh10.5 billion ($2.9 billion) at the end of December.