Oil settles near $75; sharp U.S. inventory drop counters virus worry | Reuters
Oil settled near $75 a barrel on Wednesday after data showed U.S. crude inventories fell more sharply than analysts had forecast, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.
Crude inventories fell by 4.1 million barrels in the week to July 23, the U.S. Energy Information Administration said. Gasoline and distillate fuel stocks also dropped.
"A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both," said Matt Smith, director of commodity research at ClipperData.
Brent crude settled up 26 cents, or 0.4%, to $74.74 a barrel, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1%, to $72.39.
Oil has risen 45% this year, helped by demand recovery and supply curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.
Wednesday, 28 July 2021
#Dubai based Swvl to list on Nasdaq through $1.5bn SPAC deal
Dubai-based Swvl to list on Nasdaq through $1.5bn SPAC deal
Dubai-based Swvl will become the second technology start-up in the Middle East to list on the Nasdaq through a special purpose acquisition company at a valuation of $1.5 billion, the company said on Wednesday.
The Cairo-born mass transit and shared mobility services provider is set to go public through a merger with Queen’s Gambit Growth Capital, the first SPAC that is led entirely by women.
The combined public company will be named Swvl Holdings Corporation and is expected to list under the ticker symbol SWVL. The transaction is expected to close in the fourth quarter of 2021.
“Dubai-headquartered Swvl is the first Middle East $1.5bn Unicorn to list on Nasdaq US, founded by Mostafa Kandil, 28-year-old entrepreneur,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in a tweet.
“Dubai’s impact on the global start-up scene shows the vision and spirit of the region’s youth in shaping tomorrow’s businesses.”
Dubai-based Swvl will become the second technology start-up in the Middle East to list on the Nasdaq through a special purpose acquisition company at a valuation of $1.5 billion, the company said on Wednesday.
The Cairo-born mass transit and shared mobility services provider is set to go public through a merger with Queen’s Gambit Growth Capital, the first SPAC that is led entirely by women.
The combined public company will be named Swvl Holdings Corporation and is expected to list under the ticker symbol SWVL. The transaction is expected to close in the fourth quarter of 2021.
“Dubai-headquartered Swvl is the first Middle East $1.5bn Unicorn to list on Nasdaq US, founded by Mostafa Kandil, 28-year-old entrepreneur,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in a tweet.
“Dubai’s impact on the global start-up scene shows the vision and spirit of the region’s youth in shaping tomorrow’s businesses.”
Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters
Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters
Oil rose towards $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, two market sources citing American Petroleum Institute figures said crude stocks fell 4.7 million barrels, more than analysts forecast.
"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.
Brent crude rose 41 cents, or 0.6%, to $74.89 a barrel at 1337 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 48 cents, or 0.7%, to $72.13.
Oil rose towards $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, two market sources citing American Petroleum Institute figures said crude stocks fell 4.7 million barrels, more than analysts forecast.
"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.
Brent crude rose 41 cents, or 0.6%, to $74.89 a barrel at 1337 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 48 cents, or 0.7%, to $72.13.
#AbuDhabi's Mubadala invests $250mln in biosimulation firm Certara | ZAWYA MENA Edition
Abu Dhabi's Mubadala invests $250mln in biosimulation firm Certara | ZAWYA MENA Edition
Abu Dhabi’s Mubadala Investment Company has made an investment worth approximately $250 million in Certara, a Nasdaq-listed biosimulation company.
Mubadala and certain existing institutional shareholders of Certara, including a shareholder affiliated with EQT, a private equity company, have entered into an agreement under which an affiliate of Mubadala will purchase an aggregate of 9,615,384 shares at $26 per share from the shareholders in a private transaction.
The transaction is scheduled to close on August 2, 2021. EQT will remain a significant shareholder in the company after the transaction, Mubadala said in a statement Wednesday.
The sovereign investor, which manages a global portfolio of $232 billion aimed at generating sustainable financial returns for the Government of Abu Dhabi, said this investment aligned with its strategy of “enabling innovation to address unmet clinical needs and drive cost efficiencies.”
Certara accelerates medicines using biosimulation software and technology to transform traditional drug discovery and development. Its clients include more than 1,650 global biopharmaceutical companies.
Camilla Languille, Head of Life Sciences at Mubadala, said, “Biosimulation is transforming traditional drug development via computational approaches that save time and cost throughout the entire biopharma R&D process. We are proud to have invested in Certara, whose market-leading software is accelerating the development of new medicines that improve the lives of patients.”
Abu Dhabi’s Mubadala Investment Company has made an investment worth approximately $250 million in Certara, a Nasdaq-listed biosimulation company.
Mubadala and certain existing institutional shareholders of Certara, including a shareholder affiliated with EQT, a private equity company, have entered into an agreement under which an affiliate of Mubadala will purchase an aggregate of 9,615,384 shares at $26 per share from the shareholders in a private transaction.
The transaction is scheduled to close on August 2, 2021. EQT will remain a significant shareholder in the company after the transaction, Mubadala said in a statement Wednesday.
The sovereign investor, which manages a global portfolio of $232 billion aimed at generating sustainable financial returns for the Government of Abu Dhabi, said this investment aligned with its strategy of “enabling innovation to address unmet clinical needs and drive cost efficiencies.”
Certara accelerates medicines using biosimulation software and technology to transform traditional drug discovery and development. Its clients include more than 1,650 global biopharmaceutical companies.
Camilla Languille, Head of Life Sciences at Mubadala, said, “Biosimulation is transforming traditional drug development via computational approaches that save time and cost throughout the entire biopharma R&D process. We are proud to have invested in Certara, whose market-leading software is accelerating the development of new medicines that improve the lives of patients.”
MIDEAST STOCKS Most Gulf bourses gain on corporate earnings boost | Reuters
MIDEAST STOCKS Most Gulf bourses gain on corporate earnings boost | Reuters
Most major stock markets in the Gulf ended higher on Wednesday, largely supported by strong corporate earnings, while the Dubai index closed lower and was the only laggard.
Saudi Arabia's benchmark index (.TASI) rose 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.6% increase in oil behemoth Saudi Aramco (2222.SE).
Ratings firm Fitch raised Aramco's outlook to stable and affirmed its IDR at "A".
In Abu Dhabi, the index (.ADI) advanced 1%, buoyed by a 0.8% rise in conglomerate International Holding (IHC.AD) and a 1.8% increase in Aldar Properties (ALDAR.AD).
Among other gainers, First Abu Dhabi Bank (FAB) (FAB.AD) was up 0.1% after the United Arab Emirates' largest lender posted a net profit of 2.88 billion dirhams ($783.9 million) for the quarter to June 30, up from 2.4 billion a year earlier.
FAB's net impairment charges fell 36% to 677 million dirhams while those of Emirates NBD almost halved to 851 million dirhams.
The Qatari benchmark (.QSI) added 0.4%, with Commercial Bank (COMB.QA) leaping 3.4%, after it recommended a shareholder meeting to increase foreign ownership limit to 100%.
The lender reported a rise in first-half net profit on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decline in Emirates NBD Bank (ENBD.DU).
Emirates NBD posted a second-quarter net profit of 2.46 billion dirhams ($669.79 million), up from 2.01 billion dirhams, but it saw a decline in net interest income. read more
However, Dubai Islamic Bank (DISB.DU) edged up 0.2% after it posted flat quarterly net income.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up 0.1%.
Egypt's economy will grow 5.0% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%. read more
Most major stock markets in the Gulf ended higher on Wednesday, largely supported by strong corporate earnings, while the Dubai index closed lower and was the only laggard.
Saudi Arabia's benchmark index (.TASI) rose 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.6% increase in oil behemoth Saudi Aramco (2222.SE).
Ratings firm Fitch raised Aramco's outlook to stable and affirmed its IDR at "A".
In Abu Dhabi, the index (.ADI) advanced 1%, buoyed by a 0.8% rise in conglomerate International Holding (IHC.AD) and a 1.8% increase in Aldar Properties (ALDAR.AD).
Among other gainers, First Abu Dhabi Bank (FAB) (FAB.AD) was up 0.1% after the United Arab Emirates' largest lender posted a net profit of 2.88 billion dirhams ($783.9 million) for the quarter to June 30, up from 2.4 billion a year earlier.
FAB's net impairment charges fell 36% to 677 million dirhams while those of Emirates NBD almost halved to 851 million dirhams.
The Qatari benchmark (.QSI) added 0.4%, with Commercial Bank (COMB.QA) leaping 3.4%, after it recommended a shareholder meeting to increase foreign ownership limit to 100%.
The lender reported a rise in first-half net profit on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decline in Emirates NBD Bank (ENBD.DU).
Emirates NBD posted a second-quarter net profit of 2.46 billion dirhams ($669.79 million), up from 2.01 billion dirhams, but it saw a decline in net interest income. read more
However, Dubai Islamic Bank (DISB.DU) edged up 0.2% after it posted flat quarterly net income.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up 0.1%.
Egypt's economy will grow 5.0% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%. read more
Arqaam's Meijer on MENA Banks' 1H Results - Bloomberg video
Arqaam's Meijer on MENA Banks' 1H Results - Bloomberg
Jaap Meijer, MD & Head of Equities Research, Arqaam Capital discusses the latest HY results from banks Emirates NBD and FAB; analyzes Saudi stocks and gives his investment picks. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Insufficient funds to pay indemnity for expats in #Kuwait government offices | ZAWYA MENA Edition
Insufficient funds to pay indemnity for expats in Kuwait government offices | ZAWYA MENA Edition
The Civil Service Commission (CSC) called on the Ministry of Finance to strengthen its budget to pay end-of-service benefits to resident employees whose services have ended in government institutions, reports Al-Qabas daily quoting reliable sources.
The same sources told the daily the payment of dues of expatriate employees who are replaced by the citizens in government institutions is facing a delay of up to months, which has caused a number of them leaving before the dues are paid, or some of them remain with notices to leave the country until the dues are paid.
The sources attributed the matter to the high number of residents whose services were terminated within the replacement policy, which caused the budget allocated for this item to be depleted.
The sources stated the Ministry of Finance has not yet responded to the CSC demand to inject funds into the budget for the end-of-service bonuses item, while the end of their services are awaiting their disbursement, indicating that the solution to the Kuwaitization and the adjustment of the demographic structure must be in cooperation between all concerned parties until it is done as required financially and administratively, noting that the termination of the services of residents cannot bear fruit in modifying the demographic structure unless their dues are disbursed to ensure their departure from the country.
The sources concluded that one of the conditions for disbursing the end-of-service indemnities is to attach a notice of departure by the employee whose services are terminated, indicating that some of them obtain temporary residences until the completion of their financial procedures and obtaining their financial dues, but these temporary residences expire before the payment of dues due to the budget deficit.
The Civil Service Commission (CSC) called on the Ministry of Finance to strengthen its budget to pay end-of-service benefits to resident employees whose services have ended in government institutions, reports Al-Qabas daily quoting reliable sources.
The same sources told the daily the payment of dues of expatriate employees who are replaced by the citizens in government institutions is facing a delay of up to months, which has caused a number of them leaving before the dues are paid, or some of them remain with notices to leave the country until the dues are paid.
The sources attributed the matter to the high number of residents whose services were terminated within the replacement policy, which caused the budget allocated for this item to be depleted.
The sources stated the Ministry of Finance has not yet responded to the CSC demand to inject funds into the budget for the end-of-service bonuses item, while the end of their services are awaiting their disbursement, indicating that the solution to the Kuwaitization and the adjustment of the demographic structure must be in cooperation between all concerned parties until it is done as required financially and administratively, noting that the termination of the services of residents cannot bear fruit in modifying the demographic structure unless their dues are disbursed to ensure their departure from the country.
The sources concluded that one of the conditions for disbursing the end-of-service indemnities is to attach a notice of departure by the employee whose services are terminated, indicating that some of them obtain temporary residences until the completion of their financial procedures and obtaining their financial dues, but these temporary residences expire before the payment of dues due to the budget deficit.
#UAE Opens 10-Year ‘Golden Visa’ Scheme to All Resident Doctors - Bloomberg
UAE Opens 10-Year ‘Golden Visa’ Scheme to All Resident Doctors - Bloomberg
The United Arab Emirates will allow all resident doctors to apply for so-called “golden visas,” a 10-year permit covering specialized sectors including science, innovation and health care.
Doctors licensed by UAE health regulators can apply before September 2022, state-run news agency WAM reported Wednesday.
The long-term visa allows foreigners to work, live and study without needing an Emirati sponsor. Expat residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
The United Arab Emirates will allow all resident doctors to apply for so-called “golden visas,” a 10-year permit covering specialized sectors including science, innovation and health care.
Doctors licensed by UAE health regulators can apply before September 2022, state-run news agency WAM reported Wednesday.
The long-term visa allows foreigners to work, live and study without needing an Emirati sponsor. Expat residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
LNG price recovery spurs investment in race against carbon targets | Reuters
LNG price recovery spurs investment in race against carbon targets | Reuters
The investment outlook for liquefied natural gas (LNG) has improved this year but project go-aheads will not match the bonanza of 2019, as the fight against climate change clouds the prospects for gas demand growth longer term.
Renewed optimism as the industry emerges from the pandemic, rapidly rebounding oil and gas prices and a better economic outlook is building confidence in short and long term LNG demand in Asia and spurring companies to look at new LNG projects, most of which were shelved last year when prices slumped.
However they need to take into account the ever tighter carbon emissions targets that governments are setting for 2030 and beyond.
For oil and gas producers, LNG is seen as the best option for helping their customers cut carbon emissions, especially in the Asia Pacific, where it can replace coal as a fuel, at least until clean hydrogen becomes affordable.
Global LNG demand is expected to grow by 53% to 560 million tonnes per annum (mtpa) between 2020 and 2030, consultancy Wood Mackenzie said.
To help meet that demand, Qatar Petroleum earlier this year gave the go-ahead for the world’s biggest LNG project, a 32 mtpa expansion of its North Field LNG, while Gazprom started construction of the 13 mtpa Baltic LNG project in Russia.
“Robust demand growth notwithstanding, the addition of significant new Qatari and Russian capacity means that LNG developers are now racing to get their projects through an increasingly narrow proverbial door within this decade,” WoodMac vice president Valery Chow said.
The investment outlook for liquefied natural gas (LNG) has improved this year but project go-aheads will not match the bonanza of 2019, as the fight against climate change clouds the prospects for gas demand growth longer term.
Renewed optimism as the industry emerges from the pandemic, rapidly rebounding oil and gas prices and a better economic outlook is building confidence in short and long term LNG demand in Asia and spurring companies to look at new LNG projects, most of which were shelved last year when prices slumped.
However they need to take into account the ever tighter carbon emissions targets that governments are setting for 2030 and beyond.
For oil and gas producers, LNG is seen as the best option for helping their customers cut carbon emissions, especially in the Asia Pacific, where it can replace coal as a fuel, at least until clean hydrogen becomes affordable.
Global LNG demand is expected to grow by 53% to 560 million tonnes per annum (mtpa) between 2020 and 2030, consultancy Wood Mackenzie said.
To help meet that demand, Qatar Petroleum earlier this year gave the go-ahead for the world’s biggest LNG project, a 32 mtpa expansion of its North Field LNG, while Gazprom started construction of the 13 mtpa Baltic LNG project in Russia.
“Robust demand growth notwithstanding, the addition of significant new Qatari and Russian capacity means that LNG developers are now racing to get their projects through an increasingly narrow proverbial door within this decade,” WoodMac vice president Valery Chow said.
Alpha Dhabi profit rises sharply on acquisitions
Alpha Dhabi profit rises sharply on acquisitions
Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in second-quarter net income as it continues to expand business through strategic acquisitions.
Net income attributable to shareholders of the company for the three months to the end of June climbed to Dh731.12 million ($199m), from Dh28.45m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company's quarterly net income after tax climbed to Dh1.62bn, from Dh27.75m in the second quarter of 2020.
The rise in profitability reflects “the impact of the transformative change during the year”, Alpha Dhabi said.
Alpha Dhabi shares climbed almost 2 per cent to Dh27 on more than 54 million shares trade at 11:40am. Its parent IHC advanced 2.9 per cent to Dh134.80 while Abu Dhabi's benchmark general index rose 0.74 per cent.
Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in second-quarter net income as it continues to expand business through strategic acquisitions.
Net income attributable to shareholders of the company for the three months to the end of June climbed to Dh731.12 million ($199m), from Dh28.45m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company's quarterly net income after tax climbed to Dh1.62bn, from Dh27.75m in the second quarter of 2020.
The rise in profitability reflects “the impact of the transformative change during the year”, Alpha Dhabi said.
Alpha Dhabi shares climbed almost 2 per cent to Dh27 on more than 54 million shares trade at 11:40am. Its parent IHC advanced 2.9 per cent to Dh134.80 while Abu Dhabi's benchmark general index rose 0.74 per cent.
#UAE News: Top Banks See Profits Surge as Impairments Drop on Recovery - Bloomberg
UAE News: Top Banks See Profits Surge as Impairments Drop on Recovery - Bloomberg
The three largest banks in the United Arab Emirates reported a drop in impairment charges by nearly a third in the first half as they took advantage of an economic recovery from the Covid-19 pandemic.
Emirates NBD PJSC, Dubai’s biggest lender, and its counterpart in the UAE capital, First Abu Dhabi Bank PJSC, posted an increase in profit in the first half, supported by higher fee income and a drop in the cost of risk. Dubai Islamic Bank’s first-half impairments fell 29% even though profit dropped.
The results reflect an improvement in economic conditions in the UAE, OPEC’s third-biggest producer, whose vaccine rollout fed an upswing in activity and as oil prices rebounded. Executives emphasized lower-than-expected loan-loss charges, pointing to their banks’ strengthening balance sheets and adequate provisioning while still sounding caution about the outlook.
Emirates NBD’s profit rose 17% to 4.8 billion dirhams ($1.3 billion) and impairment allowances dropped by 38% in the first half, according to a statement Wednesday.
Its performance improved as “the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels,” said Group Chief Executive Officer Shayne Nelson.
First Abu Dhabi Bank said second-quarter profit rose 19% to 2.88 billion dirhams, helped by higher fee income and sharp gains in its investments and derivatives. Impairments dropped 36%, the lender said.
Emirates NBD 1H Results and Outlook:
First Abu Dhabi Bank 2Q Results and Outlook:
Dubai Islamic Bank 1H Results
The three largest banks in the United Arab Emirates reported a drop in impairment charges by nearly a third in the first half as they took advantage of an economic recovery from the Covid-19 pandemic.
Emirates NBD PJSC, Dubai’s biggest lender, and its counterpart in the UAE capital, First Abu Dhabi Bank PJSC, posted an increase in profit in the first half, supported by higher fee income and a drop in the cost of risk. Dubai Islamic Bank’s first-half impairments fell 29% even though profit dropped.
The results reflect an improvement in economic conditions in the UAE, OPEC’s third-biggest producer, whose vaccine rollout fed an upswing in activity and as oil prices rebounded. Executives emphasized lower-than-expected loan-loss charges, pointing to their banks’ strengthening balance sheets and adequate provisioning while still sounding caution about the outlook.
Emirates NBD’s profit rose 17% to 4.8 billion dirhams ($1.3 billion) and impairment allowances dropped by 38% in the first half, according to a statement Wednesday.
Its performance improved as “the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels,” said Group Chief Executive Officer Shayne Nelson.
First Abu Dhabi Bank said second-quarter profit rose 19% to 2.88 billion dirhams, helped by higher fee income and sharp gains in its investments and derivatives. Impairments dropped 36%, the lender said.
Emirates NBD 1H Results and Outlook:
- 1H total income 11.5 billion dirhams vs 12.6 billion
- 1H impairments 2.61 billion dirhams vs 4.21 billion
- 1H cost of risk 114bps vs 172bps
- NIM 2021 guidance raised to 2.40-2.50% from 2.35-2.45%
- Loan growth guidance for the year lowered to low-single digit from low/mid single digit
First Abu Dhabi Bank 2Q Results and Outlook:
- Profit 2.88 billion dirhams, +19% y/y
- Operating income 5.19 billion dirhams, +8.3% y/y
- Net interest income 2.80 billion dirhams, -14% y/y
- Impairments 677 million dirhams, -36% y/y
- 2Q cost of risk 63bps vs 108bps
- 2Q profit driven by double-digit growth in non-interest income
- 1H impairment charges at 1.1 billion dirhams, down 36% year-on-year, “reflecting improving economic conditions, and adequate provision buffers”
- 1H operating costs at 2.8 billion dirhams, up 7% year-on-year
Dubai Islamic Bank 1H Results
- Profit 1.86 billion dirhams, -12% y/y
- Total income 5.84 billion dirhams, -14% y/y
- Impairments 1.50 billion dirhams, -29% y/y
#Dubai's Emirates NBD H1 net profit up 17% to $1.3bln | ZAWYA MENA Edition
Dubai's Emirates NBD H1 net profit up 17% to $1.3bln | ZAWYA MENA Edition
Dubai’s biggest bank Emirates NBD said its net profit rose 17 percent to 4.8 billion dirhams ($1.3 billion) as a recovery in economic conditions led to higher retail lending and improvement in the cost of risk.
Total income, however, fell 9 percent year-on year (y-o-y) to 11.5 billion dirhams, the lender said in a statement Wednesday on Dubai Financial Market where its shares trade. Total expenses fell 6 percent y-o-y to 3.76 billion dirhams “on cost management.”
The bank posted a 22 percent rise in Q2 net profit at 2.46 billion dirham ($670 million) supported by higher fee and commission income and lower impairment charges.
Earnings per share rose to 0.70 dirhams from 0.60 dirhams in the year-ago period.
The lender managed to bring down impairment allowances by 38 percent y-o-y. Cost of risk substantially improved to 114 basis points (bps), the lowest, it claimed, since the pre-pandemic days of 2019.
Net interest margin held stable at 2.45 percent with lower cost of funding as strong Current Account Saving Account (CASA) balances help mitigate the lower yields on loans and liquid assets.
Meanwhile, Emirates Islamic, a part of the Emirates NBD Group, said H1 net profit jumped to 569 million dirhams on the back of higher non-funded income, lower costs and lower impairment allowances.
Dubai’s biggest bank Emirates NBD said its net profit rose 17 percent to 4.8 billion dirhams ($1.3 billion) as a recovery in economic conditions led to higher retail lending and improvement in the cost of risk.
Total income, however, fell 9 percent year-on year (y-o-y) to 11.5 billion dirhams, the lender said in a statement Wednesday on Dubai Financial Market where its shares trade. Total expenses fell 6 percent y-o-y to 3.76 billion dirhams “on cost management.”
The bank posted a 22 percent rise in Q2 net profit at 2.46 billion dirham ($670 million) supported by higher fee and commission income and lower impairment charges.
Earnings per share rose to 0.70 dirhams from 0.60 dirhams in the year-ago period.
The lender managed to bring down impairment allowances by 38 percent y-o-y. Cost of risk substantially improved to 114 basis points (bps), the lowest, it claimed, since the pre-pandemic days of 2019.
Net interest margin held stable at 2.45 percent with lower cost of funding as strong Current Account Saving Account (CASA) balances help mitigate the lower yields on loans and liquid assets.
Meanwhile, Emirates Islamic, a part of the Emirates NBD Group, said H1 net profit jumped to 569 million dirhams on the back of higher non-funded income, lower costs and lower impairment allowances.
#UAE's biggest lender FAB posts 19% jump in Q2 net profit | Reuters
UAE's biggest lender FAB posts 19% jump in Q2 net profit | Reuters
First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, posted on Wednesday a 19% rise in quarterly net profit, underpinned by sharp gains in its investments and derivatives and on higher fee income.
FAB posted a net profit of 2.879 billion dirhams ($783.87 million) in the quarter ended June 30, up from 2.4 billion a year earlier.
Arqaam Capital had forecast a net profit of 2.4 billion dirhams, while EFG Hermes had projected 2.5 billion dirhams.
The lender's operating income was boosted by a sharp jump in derivatives and investments of 1.4 billion dirhams in the second quarter, a surge from 200 million dirhams a year earlier.
Net fee and commission income rose by more than a fifth to 768.8 million dirhams.
Net interest income fell in a weak interest rate environment worldwide while impairment charges dropped amid signs of recovery from the COVID-19 pandemic fallout.
First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, posted on Wednesday a 19% rise in quarterly net profit, underpinned by sharp gains in its investments and derivatives and on higher fee income.
FAB posted a net profit of 2.879 billion dirhams ($783.87 million) in the quarter ended June 30, up from 2.4 billion a year earlier.
Arqaam Capital had forecast a net profit of 2.4 billion dirhams, while EFG Hermes had projected 2.5 billion dirhams.
The lender's operating income was boosted by a sharp jump in derivatives and investments of 1.4 billion dirhams in the second quarter, a surge from 200 million dirhams a year earlier.
Net fee and commission income rose by more than a fifth to 768.8 million dirhams.
Net interest income fell in a weak interest rate environment worldwide while impairment charges dropped amid signs of recovery from the COVID-19 pandemic fallout.
Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters
Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters
Oil prices climbed on Wednesday after industry data showed U.S. crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.
Brent crude futures rose 38 cents, or 0.5%, to $74.86 a barrel at 0641 GMT, after shedding 2 cents on Tuesday in the first decline in six days.
U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.07 a barrel, reversing Tuesday's 0.4% decline.
"Oil prices are riding the tailwind of a weakening U.S. dollar and falling API crude inventories today," said Margaret Yang, a strategist at Singapore-based DailyFX.
"But the upward momentum appears to be weak amid virus concerns and sporadic lockdowns around the world," Yang added.
Oil prices climbed on Wednesday after industry data showed U.S. crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.
Brent crude futures rose 38 cents, or 0.5%, to $74.86 a barrel at 0641 GMT, after shedding 2 cents on Tuesday in the first decline in six days.
U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.07 a barrel, reversing Tuesday's 0.4% decline.
"Oil prices are riding the tailwind of a weakening U.S. dollar and falling API crude inventories today," said Margaret Yang, a strategist at Singapore-based DailyFX.
"But the upward momentum appears to be weak amid virus concerns and sporadic lockdowns around the world," Yang added.
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