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Sunday, 18 July 2021
Oil Market: Oil Declines After OPEC+ Agrees to Boost Production Into 2022 - Bloomberg
Oil Market: Latest News in Crude Prices, Production, OPEC - Bloomberg
#Kuwait NBK sees rising demand for credit; Q2 net profit jumps to $254mln | ZAWYA MENA Edition
Kuwait NBK sees rising demand for credit; Q2 net profit jumps to $254mln | ZAWYA MENA Edition
The National Bank of Kuwait (NBK) said it is seeing signs of rising demand for credit by households and an increase in project activity as its net profit for the second quarter more than doubled on year.
“We are seeing positive signs across sectors including buoyant demand for credit by households and a tentative acceleration in project activity in Kuwait, with about 2.2 billion dinars ($7.3 billion) expected to be tendered in 2021,” said Issam J. Al Sager, CEO of the lender said in a statement Sunday.
NBK said its Q2 net profit rose to 76.5 million dinars ($254 million) while its H1-21 net profit rose 45 percent year-on-year (y-o-y) to 160.8 million dinars.
Total loans and advances grew in the first half by 5.3percent y-o-y 18.5 billion while customer deposits fell a shade to 17.4 billion dinars.
Total assets grew by 6.4 percent y-o-y to 31.6 billion in H1.
Al Sager said the first half performance demonstrated “a number of strengths including solid asset growth, driven by increasing loans and advances as business volumes have begun to gradually normalize.”
The bank managed to preserve margin levels although the low interest rate environment continues to challenge and pressure margins, he said.
The National Bank of Kuwait (NBK) said it is seeing signs of rising demand for credit by households and an increase in project activity as its net profit for the second quarter more than doubled on year.
“We are seeing positive signs across sectors including buoyant demand for credit by households and a tentative acceleration in project activity in Kuwait, with about 2.2 billion dinars ($7.3 billion) expected to be tendered in 2021,” said Issam J. Al Sager, CEO of the lender said in a statement Sunday.
NBK said its Q2 net profit rose to 76.5 million dinars ($254 million) while its H1-21 net profit rose 45 percent year-on-year (y-o-y) to 160.8 million dinars.
Total loans and advances grew in the first half by 5.3percent y-o-y 18.5 billion while customer deposits fell a shade to 17.4 billion dinars.
Total assets grew by 6.4 percent y-o-y to 31.6 billion in H1.
Al Sager said the first half performance demonstrated “a number of strengths including solid asset growth, driven by increasing loans and advances as business volumes have begun to gradually normalize.”
The bank managed to preserve margin levels although the low interest rate environment continues to challenge and pressure margins, he said.
"Eid Mubarak" to all celebrants
Eid al-Adha - Wikipedia
Eid al-Adha, Arabic for Festival of the Sacrifice, is the latter of the two official holidays celebrated within Islam (the other being Eid al-Fitr). It honours the willingness of Ibrahim (Abraham) to sacrifice his son Ismail (Ishmael) as an act of obedience to God's command. (The Jewish and Christian religions believe that according to Genesis 22:2, Abraham took his son Isaac to sacrifice.) Before Ibrahim could sacrifice his son, however, Allah provided a lamb to sacrifice instead. In commemoration of this intervention, animals are sacrificed ritually. One third of their meat is consumed by the family offering the sacrifice, while the rest is distributed to the poor and needy. Sweets and gifts are given, and extended family are typically visited and welcomed.
National Bank of Fujairah’s H1 profit up 17.1 per cent | Banking – Gulf News
National Bank of Fujairah’s H1 profit up 17.1 per cent | Banking – Gulf News
National Bank of Fujairah (NBF) posted a net profit of Dh76.2 million for the first half of 2021, up 17.1 per cent year on year.
The net profit was up 430.8 per cent for the three month period ended 30 June 2021 compared to the corresponding period of 2020.
NBF achieved an operating profit growth of 11.3 per cent for the three month period ended 30 June 2021 over the corresponding period of 2020; and 2.3 per cent compared to Q1 2021. Operating profit stood at Dh502 million for the six-month period compared to Dh521.4 million in the corresponding period of 2020.
Bank’s operating income grew 7.8 per cent during the second quarter over the corresponding period of 2020; and 1.1 per cent compared to Q1 2021. Operating income stood at Dh724.5 million in H1 2021 compared to Dh755.6 million in the corresponding period of 2020.
Net interest income and net income from Islamic financing and investment activities stood at Dh469.1 million for first half of the year compared to Dh 511.9 million in the corresponding period of 2020. Net fees, commission and other income rose 6.1 per cent to Dh 166.2 million for the first half of the year compared to Dh156.7 million in the corresponding period of 2020.
“Our H1 2021 results exhibit the Group’s resilience; marking the return to profitable growth in line with the bank’s strategy to recognize the substantial negative impact from a few exceptional exposures and COVID-19 pandemic in 2020 relatively early to achieve a recovery in asset quality this year. The current economic outlook depicts signs of a return to growth on the back of UAE government measures against the aftermath of COVID-19,” said Dr Raja Al Gurg, Deputy Chairperson of NBF.
National Bank of Fujairah (NBF) posted a net profit of Dh76.2 million for the first half of 2021, up 17.1 per cent year on year.
The net profit was up 430.8 per cent for the three month period ended 30 June 2021 compared to the corresponding period of 2020.
NBF achieved an operating profit growth of 11.3 per cent for the three month period ended 30 June 2021 over the corresponding period of 2020; and 2.3 per cent compared to Q1 2021. Operating profit stood at Dh502 million for the six-month period compared to Dh521.4 million in the corresponding period of 2020.
Bank’s operating income grew 7.8 per cent during the second quarter over the corresponding period of 2020; and 1.1 per cent compared to Q1 2021. Operating income stood at Dh724.5 million in H1 2021 compared to Dh755.6 million in the corresponding period of 2020.
Net interest income and net income from Islamic financing and investment activities stood at Dh469.1 million for first half of the year compared to Dh 511.9 million in the corresponding period of 2020. Net fees, commission and other income rose 6.1 per cent to Dh 166.2 million for the first half of the year compared to Dh156.7 million in the corresponding period of 2020.
“Our H1 2021 results exhibit the Group’s resilience; marking the return to profitable growth in line with the bank’s strategy to recognize the substantial negative impact from a few exceptional exposures and COVID-19 pandemic in 2020 relatively early to achieve a recovery in asset quality this year. The current economic outlook depicts signs of a return to growth on the back of UAE government measures against the aftermath of COVID-19,” said Dr Raja Al Gurg, Deputy Chairperson of NBF.
#Dubai Islamic Bank wins ongoing legal tussle with NMC's administrators
Dubai Islamic Bank wins ongoing legal tussle with NMC's administrators
Dubai Islamic Bank on Sunday said it remained committed to the restructuring of NMC Healthcare but said the process "must be based on an acknowledgement of existing legitimate security interests" after winning the latest round of a legal tussle in the Abu Dhabi Global Market Courts.
The joint administrators for Abu Dhabi-based NMC, Richard Fleming and Benjamin Cairns of Alvarez & Marsal, had brought legal action against DIB in March in a dispute related to the lender's attempts to enforce its security over sums held by 12 insurers that the healthcare company had set aside as collateral for loans.
Administrators had argued that a moratorium on all legal proceedings related to the healthcare group had been secured once NMC Healthcare and 35 other entities were placed into administration in the ADGM Courts in September last year.
However, DIB had challenged ADGM Courts' jurisdiction to rule in its legal disputes with the insurers. In a hearing last week, the judge referred the case to arbitration, but ordered administrators to pay both their own and 75 per cent of DIB's legal costs thus far. The Dubai lender's legal costs to date are $1.2 million, Reuters reported last week, citing a court transcript that has yet to be filed on the ADGM Courts website.
"The judge affirmed that DIB was 'the overall winner in this phase of the legislation'," the lender said in a statement to the Dubai Financial Market, where its shares trade, on Sunday.
"In addition to the ADGM legal proceedings, DIB continues to successfully obtain judgments in our favour in the Dubai Courts ordering the relevant insurance companies to make payments" assigned to the lender under its loan agreement with NMC, it added.
"DIB is one of the largest creditors to the NMC Group. We affirm our commitment to support a restructuring of the NMC business to ensure its successful emergence from administration. Any such restructuring must be based on an acknowledgement of existing legitimate security interests in accordance with the provisions of applicable laws," the bank said.
Dubai Islamic Bank on Sunday said it remained committed to the restructuring of NMC Healthcare but said the process "must be based on an acknowledgement of existing legitimate security interests" after winning the latest round of a legal tussle in the Abu Dhabi Global Market Courts.
The joint administrators for Abu Dhabi-based NMC, Richard Fleming and Benjamin Cairns of Alvarez & Marsal, had brought legal action against DIB in March in a dispute related to the lender's attempts to enforce its security over sums held by 12 insurers that the healthcare company had set aside as collateral for loans.
Administrators had argued that a moratorium on all legal proceedings related to the healthcare group had been secured once NMC Healthcare and 35 other entities were placed into administration in the ADGM Courts in September last year.
However, DIB had challenged ADGM Courts' jurisdiction to rule in its legal disputes with the insurers. In a hearing last week, the judge referred the case to arbitration, but ordered administrators to pay both their own and 75 per cent of DIB's legal costs thus far. The Dubai lender's legal costs to date are $1.2 million, Reuters reported last week, citing a court transcript that has yet to be filed on the ADGM Courts website.
"The judge affirmed that DIB was 'the overall winner in this phase of the legislation'," the lender said in a statement to the Dubai Financial Market, where its shares trade, on Sunday.
"In addition to the ADGM legal proceedings, DIB continues to successfully obtain judgments in our favour in the Dubai Courts ordering the relevant insurance companies to make payments" assigned to the lender under its loan agreement with NMC, it added.
"DIB is one of the largest creditors to the NMC Group. We affirm our commitment to support a restructuring of the NMC business to ensure its successful emergence from administration. Any such restructuring must be based on an acknowledgement of existing legitimate security interests in accordance with the provisions of applicable laws," the bank said.
#UAE's energy minister says it supports OPEC+ agreement | Reuters
UAE's energy minister says it supports OPEC+ agreement | Reuters
The United Arab Emirates’ energy minister said on Sunday the Gulf state supports an agreement reached by the OPEC+ alliance.
“We support strongly the agreement reached,” Minister Suhail al-Mazrouei, was quoted as saying by al-Sharq TV.
OPEC+ agreed on Sunday to further ease oil supply cuts from August and to extend an overall supply management pact until the end of 2022.
The United Arab Emirates’ energy minister said on Sunday the Gulf state supports an agreement reached by the OPEC+ alliance.
“We support strongly the agreement reached,” Minister Suhail al-Mazrouei, was quoted as saying by al-Sharq TV.
OPEC+ agreed on Sunday to further ease oil supply cuts from August and to extend an overall supply management pact until the end of 2022.
ADCB posts 14% increase in Q2 net profit, bullish on NMC recoveries | Reuters
ADCB posts 14% increase in Q2 net profit, bullish on NMC recoveries | Reuters
Abu Dhabi Commercial Bank (ADCB), UAE’s third-biggest lender, reported a jump in second-quarter net profit on Sunday and said it was optimistic about the turnaround of troubled hospital operator NMC, to which it was heavily exposed.
Net profit between April and June amounted to 1.4 billion dirhams ($381.22 million), a 14% increase year on year and a 25% increase quarter on quarter.
“The growth in net profit is a result of the increase in a diversified revenue stream, disciplined cost control and a prudent approach to risk management”, Chairman Khaldoon Al Mubarak said in a statement.
ADCB posted a 25% drop in net profit last year as it booked significantly higher provisions for NMC, which went into administration last year after months of turmoil following questions over its financial reporting and the discovery of undisclosed debt.
ADCB had nearly $1 billion in lending exposure to the group, which is set to soon obtain creditor approval for a reorganisation of the business.
“The bank is confident that the provisions it has recorded for NMC are sufficient and appropriate,” CEO Ala’a Eraiqat said.
ADCB was among a group of lenders which last year provided a $325 million facility to fund NMC’s administration and pave the way for restructuring.
Partly because of that facility, which gave creditors a super senior status, the bank said it was well positioned to maximise recoveries.
ADCB’s non-performing loan ratio improved to 5.86% in the second quarter from 6.53% in the first three months of this year, but was 70 basis points higher year on year.
Impairment charges of 678 million dirhams in the second quarter were 1% higher year on year and 4% lower quarter on quarter, it said.
Abu Dhabi Commercial Bank (ADCB), UAE’s third-biggest lender, reported a jump in second-quarter net profit on Sunday and said it was optimistic about the turnaround of troubled hospital operator NMC, to which it was heavily exposed.
Net profit between April and June amounted to 1.4 billion dirhams ($381.22 million), a 14% increase year on year and a 25% increase quarter on quarter.
“The growth in net profit is a result of the increase in a diversified revenue stream, disciplined cost control and a prudent approach to risk management”, Chairman Khaldoon Al Mubarak said in a statement.
ADCB posted a 25% drop in net profit last year as it booked significantly higher provisions for NMC, which went into administration last year after months of turmoil following questions over its financial reporting and the discovery of undisclosed debt.
ADCB had nearly $1 billion in lending exposure to the group, which is set to soon obtain creditor approval for a reorganisation of the business.
“The bank is confident that the provisions it has recorded for NMC are sufficient and appropriate,” CEO Ala’a Eraiqat said.
ADCB was among a group of lenders which last year provided a $325 million facility to fund NMC’s administration and pave the way for restructuring.
Partly because of that facility, which gave creditors a super senior status, the bank said it was well positioned to maximise recoveries.
ADCB’s non-performing loan ratio improved to 5.86% in the second quarter from 6.53% in the first three months of this year, but was 70 basis points higher year on year.
Impairment charges of 678 million dirhams in the second quarter were 1% higher year on year and 4% lower quarter on quarter, it said.
#UAE Stocks End Little Changed With OPEC+ Deal Eyed: Inside EM - Bloomberg
UAE Stocks End Little Changed With OPEC+ Deal Eyed: Inside EM - Bloomberg
Equities in the United Arab Emirates’ finished Sunday little changed as investors focused on the outcome of a meeting between OPEC and its allies ahead of a long holiday.
Abu Dhabi’s ADX General Index and Dubai’s DFM General Index slipped less than 0.1% each. The volume of trade in both exchanges was lower than the 30-day average before the four-day Eid holiday, which starts Monday.
Markets in the oil-rich country closed before news that OPEC and its allies agreed to gradually add more oil supplies to the market after Saudi Arabia and the UAE resolved a dispute that was blocking the deal. The cartel will boost output by as much as 400,000 barrels a day each month until all of its halted output has been revived, delegates said.
The decision puts an end to a diplomatic spat that has unnerved oil traders. Brent crude fell 2.6% to $73.59 per barrel last week, the biggest weekly decline since May 21.
Middle Eastern Markets:
Equities in the United Arab Emirates’ finished Sunday little changed as investors focused on the outcome of a meeting between OPEC and its allies ahead of a long holiday.
Abu Dhabi’s ADX General Index and Dubai’s DFM General Index slipped less than 0.1% each. The volume of trade in both exchanges was lower than the 30-day average before the four-day Eid holiday, which starts Monday.
Markets in the oil-rich country closed before news that OPEC and its allies agreed to gradually add more oil supplies to the market after Saudi Arabia and the UAE resolved a dispute that was blocking the deal. The cartel will boost output by as much as 400,000 barrels a day each month until all of its halted output has been revived, delegates said.
The decision puts an end to a diplomatic spat that has unnerved oil traders. Brent crude fell 2.6% to $73.59 per barrel last week, the biggest weekly decline since May 21.
Middle Eastern Markets:
- Telecom operator Etisalat falls 0.8% in Abu Dhabi
- Other stocks declining on Sunday: Aldar Properties -1.3%, Abu Dhabi Islamic Bank -0.7%, Arkan Building Materials -5.3%
- Abu Dhabi Commercial Bank reported net income for the second quarter of AED 1.4b, beating the average analyst estimate
- Bahrain-based GFH Financial Group is reconsidering its decision to delist from Kuwait’s stock exchange
- Exchanges in Kuwait, Qatar, Saudi Arabia, Oman and Israel are closed for holidays
- Egypt’s EGX 30 rises 0.8% as of 1:13 p.m. in Cairo
- Oil products manufacturer Alexandria Mineral Oils rises 7.3%, the most among index members
OPEC+ Agrees to Boost Output After Saudis, UAE End Standoff - Bloomberg
OPEC+ Agrees to Boost Output After Saudis, UAE End Standoff - Bloomberg
OPEC and its allies agreed to gradually add more oil supplies to the market after Saudi Arabia and the United Arab Emirates resolved a dispute.
The cartel will boost output by as much as 400,000 barrels a day each month from August until all of its halted output has been revived. The deal will also give Saudi Arabia, the UAE, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022, according to a statement from the group.
The truce will ease a looming supply squeeze and reduce the risk of an inflationary oil price spike. It also puts an end to a diplomatic spat that unnerved traders, as the fight between the two long-time allies risked unraveling the broader accord between the Organization of Petroleum Exporting Countries and its allies that has underpinned the recovery in crude prices.
Saudi Energy Minister Prince Abdulaziz bin Salman celebrated the compromise at the start of Sunday’s meeting using, as he often does, a Hollywood reference.
“Instead of ‘I am back,’ we will say ‘we are back,’” the prince said.
The multifaceted agreement means several things for the oil market. It gives consumers a clear view of how quickly OPEC+ will restore the 5.8 million barrels a day of production its still withholding, since making deep cuts last year in the initial stages of the pandemic.
It also resolves longstanding grievances that have tested the unity of the groups since late 2020. The UAE has been arguing that the way its quota was calculated was unfair because it didn’t reflect a costly expansion in the country’s industry. Its baseline has now increased to 3.5 million barrels day, below the 3.8 million it initially demanded but well above the previous level of 3.2 million.
OPEC and its allies agreed to gradually add more oil supplies to the market after Saudi Arabia and the United Arab Emirates resolved a dispute.
The cartel will boost output by as much as 400,000 barrels a day each month from August until all of its halted output has been revived. The deal will also give Saudi Arabia, the UAE, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022, according to a statement from the group.
The truce will ease a looming supply squeeze and reduce the risk of an inflationary oil price spike. It also puts an end to a diplomatic spat that unnerved traders, as the fight between the two long-time allies risked unraveling the broader accord between the Organization of Petroleum Exporting Countries and its allies that has underpinned the recovery in crude prices.
Saudi Energy Minister Prince Abdulaziz bin Salman celebrated the compromise at the start of Sunday’s meeting using, as he often does, a Hollywood reference.
“Instead of ‘I am back,’ we will say ‘we are back,’” the prince said.
The multifaceted agreement means several things for the oil market. It gives consumers a clear view of how quickly OPEC+ will restore the 5.8 million barrels a day of production its still withholding, since making deep cuts last year in the initial stages of the pandemic.
It also resolves longstanding grievances that have tested the unity of the groups since late 2020. The UAE has been arguing that the way its quota was calculated was unfair because it didn’t reflect a costly expansion in the country’s industry. Its baseline has now increased to 3.5 million barrels day, below the 3.8 million it initially demanded but well above the previous level of 3.2 million.
#AbuDhabi Stocks Climb With OPEC+ Deal in Sight: Inside EM - Bloomberg
Abu Dhabi Stocks Climb With OPEC+ Deal in Sight: Inside EM - Bloomberg
Equities in the United Arab Emirates’ capital rose as investors await a meeting between OPEC and its allies on Sunday and ahead of a long holiday.
Abu Dhabi’s ADX General Index rose 0.2% as of 11:37 a.m. local time, while Dubai’s DFM Index slipped less than 0.1%. The volume of trade in both exchanges was lower than the 30-day average ahead of the four-day Eid holiday, which starts Monday.
The meeting is the latest sign that a bitter standoff between Saudi Arabia and the United Arab Emirates has been resolved. The UAE blocked earlier this month an OPEC+ deal that cartel leaders Russia and Saudi Arabia hashed out to increase output, demanding better terms for itself. Officials have said privately in recent days that a full meeting would only be called if a deal was in reach.
It would also put an end to a diplomatic spat that has unnerved oil traders. Brent crude fell 2.6% to $73.59 per barrel last week, the biggest weekly decline since May 21.
“We would expect to see some level of compromise to have been reached with regards to the UAE’s production baseline being increased,” said Fahd Iqbal, the head of Middle East research at Credit Suisse AG in Dubai.
Middle Eastern Markets:
Equities in the United Arab Emirates’ capital rose as investors await a meeting between OPEC and its allies on Sunday and ahead of a long holiday.
Abu Dhabi’s ADX General Index rose 0.2% as of 11:37 a.m. local time, while Dubai’s DFM Index slipped less than 0.1%. The volume of trade in both exchanges was lower than the 30-day average ahead of the four-day Eid holiday, which starts Monday.
The meeting is the latest sign that a bitter standoff between Saudi Arabia and the United Arab Emirates has been resolved. The UAE blocked earlier this month an OPEC+ deal that cartel leaders Russia and Saudi Arabia hashed out to increase output, demanding better terms for itself. Officials have said privately in recent days that a full meeting would only be called if a deal was in reach.
It would also put an end to a diplomatic spat that has unnerved oil traders. Brent crude fell 2.6% to $73.59 per barrel last week, the biggest weekly decline since May 21.
“We would expect to see some level of compromise to have been reached with regards to the UAE’s production baseline being increased,” said Fahd Iqbal, the head of Middle East research at Credit Suisse AG in Dubai.
Middle Eastern Markets:
- First Abu Dhabi Bank gains 0.5%, adding the most to the gauge’s increase
- Other stocks rising: Etisalat +0.4%, International Holding Co. +0.6%, Adnoc Distribution +0.6%
- NOTE: Abu Dhabi Commercial Bank is expected to deliver financial results Sunday
- Bahrain-based GFH Financial Group is reconsidering its decision to delist from Kuwait’s stock exchange
- Exchanges in Kuwait, Qatar, Saudi Arabia, Oman and Israel are closed for holidays