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Tuesday, 29 August 2017

Profitability to remain resilient for top UAE lenders - The National

Profitability to remain resilient for top UAE lenders - The National:

"The top four banks in the UAE, with a combined deposit base of Dh1 trillion, will post sturdy profits in the next 12 to 18 months on the back of higher returns on loans and stable funding cost, despite sluggish economic growth and weaker fee and commission income, according to Moody’s Investors Service.

The four lenders - First Abu Dhabi Bank (FAB), the second-largest financial institutions in broader Middle East region; Emirates NBD (ENBD), Dubai biggest bank by assets; Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank (DIB), the top Sharia-compliant lender in the country, reported a combined net profit of Dh6.7bn in the second quarter of this year. Aggregate net profitability was broadly flat versus year-on-year but fell 3.5 per cent quarter-on-quarter, partially due to a fall in fee and commission

"Profitability was supported by higher yields on loans and stable funding costs, which drove higher net interest income, despite sluggish economic growth due to current oil prices," Nitish Bhojnagarwala, a vice president at Moody's said in the report."



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BAML, FAB to get roles in IPO of Emaar's UAE real estate unit: sources

BAML, FAB to get roles in IPO of Emaar's UAE real estate unit: sources:

"Bank of America Merrill Lynch (BAC.N) and First Abu Dhabi Bank FAB.AD are set to join Goldman Sachs (GS.N) in getting roles in the share sale of the UAE real estate development business of Emaar Properties EMAR.DU, sources told Reuters on Tuesday. Dubai-based Emaar, the builder of the world’s tallest tower, is considering an initial public offering of up to 30 percent of the business by November in what could be the first listing on the Dubai Financial Market in nearly three years. A spokesman for Emaar, in which Dubai’s government owns a minority stake, said the list of banks was not yet finalised."



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Iraq faces resistance from Asian buyers on "ambitious" oil price change

Iraq faces resistance from Asian buyers on "ambitious" oil price change:

"Iraq’s proposal to change the way it prices crude oil in Asia faces resistance from refiners who fear that longer lead times between pricing and deliveries will expose them to more risk. Iraq’s state oil marketer SOMO surprised traders this week by seeking feedback on plans to switch its Basra crude benchmark in Asia to pricing based off the Dubai Mercantile Exchange from January 2018, dropping quotes based on assessments by oil pricing agency S&P Global Platts. The move would affect the price of about 2 million barrels per day (bpd) of crude oil supplies to Asia, mainly shipped to India, China and South Korea."



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MIDEAST STOCKS-Qatar falls after Fitch downgrade, Qalaa helps Egypt

MIDEAST STOCKS-Qatar falls after Fitch downgrade, Qalaa helps Egypt:

"Qatar’s stock market dropped on Tuesday after Fitch cut the country’s credit rating, while most other Gulf bourses fell in thin trade but Egypt’s blue-chip index gained strongly, helped by investment firm Qalaa Holdings. Fitch lowered Qatar by one notch to AA-minus with a negative outlook on Monday, citing the impact of sanctions imposed by other Arab states on Doha. That brought Fitch into line with the other two major rating agencies, Moody’s and Standard & Poor’s. The downgrade threatens higher funding costs for Qatari banks as they seek to replace deposits and loans that are being withdrawn by the other Arab states. Most bank shares fell on Tuesday as Qatar National Bank lost 1.3 percent."



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Air Berlin creditors said to eye asset sale by mid-September - The National

Air Berlin creditors said to eye asset sale by mid-September - The National:

"The buyers of insolvent Air Berlin's assets will likely be picked by mid-September, people familiar with the matter told Reuters, as the race for the carrier's coveted take-off and landing slots in Germany heats up. Suitors have until September 13 to make bids and present their business plans to the airline's administrator and lenders, two sources told Reuters. A committee of creditors overlooking the liquidation aim to come to an agreement who will buy what shortly thereafter, the sources said, with one of them saying the decision could come as early as September 15."



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After Fitch downgrade, Qatar c.bank chief says banking sector strong

After Fitch downgrade, Qatar c.bank chief says banking sector strong:

"Qatar’s banks are capable of withstanding the pressure of sanctions imposed by other Arab states, and routine stress tests show the banking sector is strong and efficient, Qatari central bank governor Sheikh Abdullah bin Saud al-Thani said on Tuesday.

Sheikh Abdullah was speaking in a statement issued after Fitch Ratings lowered Qatar’s credit rating by one notch to AA-minus with a negative outlook on Monday, bringing Fitch into line with assessments by the other two major rating agencies, Moody’s and Standard & Poor’s.

Qatari banks are highly solvent and profitable, and data released in the central bank’s monthly report show they are liquid, Sheikh Abdullah added. He said the central bank was strictly following international standards in regulating banks, especially with regard to capital adequacy and liquidity."



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Full U.S. Tanks May Ease Risk of Fuel Shortages From Harvey - Bloomberg

Full U.S. Tanks May Ease Risk of Fuel Shortages From Harvey - Bloomberg:

"As devastating as the flooding has been for oil refiners in the U.S. Gulf Coast, surplus fuel inventories may help the industry withstand the worst storm to hit the country in more than a decade.

Deluges from Tropical Storm Harvey have turned Houston’s busiest highways into canals of standing water and displaced thousands of people and livestock. The floods also forced shutdowns across a regional energy hub that supplies fuel to millions of Americans from Oklahoma to Florida to New York. As much as 30 percent of U.S. fuel production may come off line temporarily, according to energy investment consultant Tudor, Pickering, Holt & Co.

But even as fuel prices surged and more heavy rain was forecast, gasoline stockpiles in the Gulf Coast are the highest for this time of year in two decades, just as demand is likely to drop, according to Bloomberg Intelligence. The Colonial Pipeline, which supplies about a quarter of the fuel consumed in the East Coast, said service has been interrupted at several locations near its origin point in Houston. Hebert and all other facilities east of Houston are operational, the company said in a statement on its website."



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Iraq Braves Break With Tradition in Search of Oil’s True Worth - Bloomberg

Iraq Braves Break With Tradition in Search of Oil’s True Worth - Bloomberg:

"OPEC’s second-largest producer is stepping up the campaign to get more for its oil by looking to revamp the way it sells crude to its biggest customers. Iraq is considering plans to use a new reference price for sales to Asia, according to traders, who received a notice from the state oil company SOMO. The producer is proposing to use a contract traded on the Dubai Mercantile Exchange as a benchmark for pricing Basrah crude, replacing the formula it currently uses along with competitors such as Saudi Arabia, Kuwait and Iran."



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MIDEAST STOCKS-Gulf mixed early on; Qatar falls after credit downgrade

MIDEAST STOCKS-Gulf mixed early on; Qatar falls after credit downgrade:

"Most Gulf stock markets traded narrowly early on Tuesday as many investors stayed away with the approach of Eid al-Adha holidays beginning this week, but Qatar’s bourse dropped after Fitch cut the country’s credit rating. Fitch lowered Qatar by one notch to AA-minus with a negative outlook on Monday, citing the impact of sanctions on Doha imposed by other Arab states. That brought Fitch into line with the other two major rating agencies, Moody’s and Standard & Poor’s. The downgrade threatens higher funding costs for Qatari banks as they seek to replace deposits and loans that are being withdrawn by the other Arab states. Qatar National Bank fell 1.2 percent as Qatar’s stock index lost 1.1 percent."



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