Kuwait spearheads GCC-listed banks' 2021 net profit surge
The Gulf region's banking sector has witnessed robust growth for 2021 with the GCC-listed banks posting a 35.8% increase in its net profit which surged to $34.5 billion from $25.4 billion in 2020, led by the growth surge in loan book, reduction in the costs of funds, according to leading advisory firm KPMG.
Regionwise, Kuwait topped the list with a 91.4% growth in the net profits of GCC-listed banks in the country which surged to $2.9 billion from 2020’s figure of $1.52 billion, stated KPMG in the seventh edition of its GCC listed banks’ results report titled ‘A new reality’ which analyzes and compares the financial outcomes and key performance indicators for the leading listed commercial banks to the previous year.
Total assets in Kuwait grew from $301.6 billion in 2020 to $320.7 billion in 2021, climbing by about 6.3%.
This report provides banking industry leaders with succinct analysis along with insights and forward-looking views and also highlights some of the major financial trends identified in the banking sector across the region.
Sunday, 5 June 2022
#Saudi shares up after PMI shows solid growth in May | Reuters
Saudi shares up after PMI shows solid growth in May | Reuters
Saudi Arabia's stock market rose on Sunday after a survey showed that non-oil private sector continued its strong growth in May as demand withstood rising output costs.
The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers' Index (PMI) for the whole economy was steady at 55.7 in May, the same as in April, which was its lowest reading since January and below the series average of 56.8. read more
Employment growth dipped marginally but remained in growth territory, where it has been since April 2021, excluding March this year.
Saudi Arabia's benchmark index (.TASI) rose 0.4% with oil giant Saudi Aramco <2222.SE) advancing 1.1%, while Al Rajhi Bank (1120.SE) was up 0.5%.
Among other stocks, ACWA Power (2082.SE) also jumped 1.3% after saying it signed a 401 million riyal ($106.91 million)contract to develop and operate the 91 MW Layla solar PV project.
In Qatar, the index (.QSI), gained 0.1%, as petrochemical maker Industries Qatar (IQCD.QA) increased 0.7% and Sharia lender Masraf Al Rayan (MARK.QA) was up 0.6%.
Outside the Gulf, Egypt's index (.EGX30) fell 0.2% after a disappointing purchasing managers' survey. The S&P Global Egypt Purchasing Managers' Index strengthened to 47.0 from April's 46.9, but still remained below the 50.0 threshold that separates growth from contraction. read more
The country's non-oil private sector activity contracted for an 18th month in May as the Ukraine crisis, import restrictions and a devalued currency put pressure on prices.
However, Ezz Steel (ESRS.CA), Egypt's largest steel producer, rose 4.6% after reporting its first quarter results.
Saudi Arabia's stock market rose on Sunday after a survey showed that non-oil private sector continued its strong growth in May as demand withstood rising output costs.
The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers' Index (PMI) for the whole economy was steady at 55.7 in May, the same as in April, which was its lowest reading since January and below the series average of 56.8. read more
Employment growth dipped marginally but remained in growth territory, where it has been since April 2021, excluding March this year.
Saudi Arabia's benchmark index (.TASI) rose 0.4% with oil giant Saudi Aramco <2222.SE) advancing 1.1%, while Al Rajhi Bank (1120.SE) was up 0.5%.
Among other stocks, ACWA Power (2082.SE) also jumped 1.3% after saying it signed a 401 million riyal ($106.91 million)contract to develop and operate the 91 MW Layla solar PV project.
In Qatar, the index (.QSI), gained 0.1%, as petrochemical maker Industries Qatar (IQCD.QA) increased 0.7% and Sharia lender Masraf Al Rayan (MARK.QA) was up 0.6%.
Outside the Gulf, Egypt's index (.EGX30) fell 0.2% after a disappointing purchasing managers' survey. The S&P Global Egypt Purchasing Managers' Index strengthened to 47.0 from April's 46.9, but still remained below the 50.0 threshold that separates growth from contraction. read more
The country's non-oil private sector activity contracted for an 18th month in May as the Ukraine crisis, import restrictions and a devalued currency put pressure on prices.
However, Ezz Steel (ESRS.CA), Egypt's largest steel producer, rose 4.6% after reporting its first quarter results.
Sanjay Shah arrest 'clear signal' #UAE will tackle international crime, says minister
Sanjay Shah arrest 'clear signal' UAE will tackle international crime, says minister
A collaboration with the Danish authorities to arrest and extradite British financial trader Sanjay Shah is a clear sign of the UAE’s commitment to disrupt organised crime, the justice minister has said.
Mr Shah, 52, has denied being a key player in a $1.7-billion tax refund scheme that is alleged to have defrauded the Danish state.
The ‘cum-ex’ trading scheme ran for three years from 2012. Foreign businesses pretend to own shares in Danish companies and claim ineligible tax refunds.
Abdullah Al Nuaimi, Minister of Justice, said the arrest delivers a clear message on international collaboration on law enforcement.
"International crime requires an international response,” he said in a statement to state news agency Wam.
A collaboration with the Danish authorities to arrest and extradite British financial trader Sanjay Shah is a clear sign of the UAE’s commitment to disrupt organised crime, the justice minister has said.
Mr Shah, 52, has denied being a key player in a $1.7-billion tax refund scheme that is alleged to have defrauded the Danish state.
The ‘cum-ex’ trading scheme ran for three years from 2012. Foreign businesses pretend to own shares in Danish companies and claim ineligible tax refunds.
Abdullah Al Nuaimi, Minister of Justice, said the arrest delivers a clear message on international collaboration on law enforcement.
"International crime requires an international response,” he said in a statement to state news agency Wam.
#Saudi property developer prices IPO at top of range | Reuters
Saudi property developer prices IPO at top of range | Reuters
Saudi Arabia property developer Retal Urban Development said on Sunday it had priced its initial public offering at 120 riyals a share, the top of the indicated range, implying a market capitalisation of 4.8 billion riyals ($1.28 billion).
The book-building process generated orders of 90.3 billion riyals, in a sign of strong momentum for Saudi Arabia's IPO market that has defied the global trend.
The company will raise 1.44 billion riyals in the IPO, selling 30% of existing shares.
Gulf issuers have raised $8.76 billion from IPOs so far this year, Refinitiv data showed last month, exceeding European flotations even as global markets remain volatile in the wake of the conflict in Ukraine.
"The robust demand for Retal's shares reflects the attractiveness of our scalable business model and highlights the investor appetite for next generation real estate development companies such as ours," said Abdullah bin Faisal bin Abdulaziz al-Braikan, CEO of Retal Development Co.
The Saudi government has launched several initiatives to increase homeownership within the kingdom and has also embarked on a major investment drive to develop infrastructure projects such as the $500 billion NEOM economic zone.
Saudi Arabia property developer Retal Urban Development said on Sunday it had priced its initial public offering at 120 riyals a share, the top of the indicated range, implying a market capitalisation of 4.8 billion riyals ($1.28 billion).
The book-building process generated orders of 90.3 billion riyals, in a sign of strong momentum for Saudi Arabia's IPO market that has defied the global trend.
The company will raise 1.44 billion riyals in the IPO, selling 30% of existing shares.
Gulf issuers have raised $8.76 billion from IPOs so far this year, Refinitiv data showed last month, exceeding European flotations even as global markets remain volatile in the wake of the conflict in Ukraine.
"The robust demand for Retal's shares reflects the attractiveness of our scalable business model and highlights the investor appetite for next generation real estate development companies such as ours," said Abdullah bin Faisal bin Abdulaziz al-Braikan, CEO of Retal Development Co.
The Saudi government has launched several initiatives to increase homeownership within the kingdom and has also embarked on a major investment drive to develop infrastructure projects such as the $500 billion NEOM economic zone.
#Saudi Wealth Fund to Take $185 Million Jordanian Bank Stake - Bloomberg
Saudi Wealth Fund to Take $185 Million Jordanian Bank Stake - Bloomberg
Saudi Arabia’s sovereign wealth fund will take a $185 million stake in Capital Bank of Jordan as part of deal to help the lender expand.
The Public Investment Fund signed a subscription agreement that would involve it buying 63 million newly issued shares to give it a 23.97% stake in the Jordanian bank, according to a statement. The deal would raise Capital Bank’s shareholders’ equity to about $846 million, helping to fund an expansion strategy in Jordan, Saudi Arabia and Iraq, and to grow its investment arm.
Capital Bank’s shares jumped as much as 4.6% and were trading up 2.1% at 2.90 dinars at 11:08 a.m. on Sunday.
The PIF, as the $620 billion wealth fund is known, has ambitions to become a global powerhouse. Run by Governor Yasir Al Rumayyan, a close ally of Crown Prince Mohammed bin Salman, its investing domestically to help diversify the Saudi economy and building an international portfolio that can give the country an income beyond crude sales.
It established the Saudi Jordanian Investment Fund with 16 Jordanian banks in 2017. The fund has capital of $3 billion to invest in Jordan.
Saudi Arabia’s sovereign wealth fund will take a $185 million stake in Capital Bank of Jordan as part of deal to help the lender expand.
The Public Investment Fund signed a subscription agreement that would involve it buying 63 million newly issued shares to give it a 23.97% stake in the Jordanian bank, according to a statement. The deal would raise Capital Bank’s shareholders’ equity to about $846 million, helping to fund an expansion strategy in Jordan, Saudi Arabia and Iraq, and to grow its investment arm.
Capital Bank’s shares jumped as much as 4.6% and were trading up 2.1% at 2.90 dinars at 11:08 a.m. on Sunday.
The PIF, as the $620 billion wealth fund is known, has ambitions to become a global powerhouse. Run by Governor Yasir Al Rumayyan, a close ally of Crown Prince Mohammed bin Salman, its investing domestically to help diversify the Saudi economy and building an international portfolio that can give the country an income beyond crude sales.
It established the Saudi Jordanian Investment Fund with 16 Jordanian banks in 2017. The fund has capital of $3 billion to invest in Jordan.
#Saudi non-oil private sector grows solidly in May, steady from April - PMI | Reuters
Saudi non-oil private sector grows solidly in May, steady from April - PMI | Reuters
Saudi Arabia's non-oil private sector continued strong growth in May, notching its 21st consecutive month of expansion, as demand withstood rising output costs, a survey showed on Sunday.
The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers' Index (PMI) for the whole economy was steady at 55.7 in May, the same as in April, which was its lowest reading since January and below the series average of 56.8.
The output sub-index, which measures business activity, fell slightly to 59.3 in May from 59.7 in April, which was also the slowest pace of growth since January. It was below the series average since 2009 of 61.4.
"The continued strength of the domestic non-oil economy encouraged firms to pass-through higher input costs to their customers in May, with the latest PMI data indicating another solid increase in selling prices due to greater fuel, material and transport costs," wrote David Owen, economist at survey compiler at S&P Global Market Intelligence.
Saudi Arabia's non-oil private sector continued strong growth in May, notching its 21st consecutive month of expansion, as demand withstood rising output costs, a survey showed on Sunday.
The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers' Index (PMI) for the whole economy was steady at 55.7 in May, the same as in April, which was its lowest reading since January and below the series average of 56.8.
The output sub-index, which measures business activity, fell slightly to 59.3 in May from 59.7 in April, which was also the slowest pace of growth since January. It was below the series average since 2009 of 61.4.
"The continued strength of the domestic non-oil economy encouraged firms to pass-through higher input costs to their customers in May, with the latest PMI data indicating another solid increase in selling prices due to greater fuel, material and transport costs," wrote David Owen, economist at survey compiler at S&P Global Market Intelligence.
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